1. Project Planning Jiwei Ma
Project Management
Project Planning
Jiwei Ma

2. Project Planning Concept of project planning
Project phases and project planning
Planning of project objectives
Planning of project implementation
Project scheduling methods and tools

3. Project Planning
Project planning is the initial effort and on-going duty of project leaders to answer the following questions:
Where to go and when to get there? – The target
How to get there? – The roadmap
Who should join? – The project team
What can help? – The methods and tools ……

4. Project Phases and Project Planning
TIME
Decision Making
Design/Planning
Operation
Execution
Closeout
Decision Making
Implementatio n
Project Control
Project Planning

5. The Importance of Project Planning in Construction
Influence on Project Cost
Design
Design Preparation
100%
Bidding/Tendering
Preliminary Design
95%
Change Order
Design Development
75%
Construction Document 1
35%
Construction Document 2
25%
Construction
Completion
Rest of Design Job
10%
1/4
1/2
3/4

6. Planning of Project Objectives
Function/Quality
Functional analysis and quality specification
Cost
Cost estimating
Time
Scheduling

7. Planning of Project Objectives
Functional analysis and quality specification
Functional analysis
Overall quality requirement
Project major component quality specification
Project quality manual

8. Phase and Planning of Quality Objective
TIME
Decision Making
Design Preparation
Design
Startup
Construction
Warrantee
Project Proposal
Feasibility Study
Design Specification
Preliminary Design
Design Development
Construction Document
Construction
Acceptance
Decision Making
Implementatio n
Functional Analysis
Overall Quality Requirement
Major Component/System Quality Specification
Quality Manual

9. Planning of Project Objectives
Cost
Fee structure
Hard cost
Soft cost
Overhead
Project structure
Project cost structure will be the mixture of fee structure and project structure

10. Cost Structure
Project Structure
Fee Structure
Cost Structure +

11. Planning of Project Objectives
Cost
Project Cost Plan (fund allocation)
Preliminary cost estimating
Based on the rule of thumb
Detailed cost estimating
Based on the cost (market price) of labor, material, equipment, etc.
The later the cost estimate has been done, the more accurate it will be.

12. Project Phases and Project Planning
TIME
Decision Making
Design/Planning
Operation
Execution
Closeout
Decision Making
Implementatio n
Project Cost Plan
Preliminary Cost Estimating
Detailed Cost Estimating

13. Accuracy of Construction Project Cost Estimating
Decision Making
Design Preparation
Design
Construction
Startup
Warrantee
Initial Investment Intention
Investment Plan
Project cost plan
Preliminary cost estimate
Cost estimate
Bidding price
Contract price
Final cost
Accounting
-30%
30%
25%
-25%
-15%
15%
10%
-10%
-5% 5%

14. Planning of Project Objectives
Scheduling
Start and finish dates
Dates of project milestones
Dates of project activities
Scheduling method
Project start and finish dates
Usually predetermined
Milestones
Predetermined or based on calculation
Activities
Duration quoted, or calculated, or assessed
Bar chart is the most popular format to present a project schedule

15. Planning of Project Objectives
Procedure of scheduling
To prepare a list of activities with expected duration
To sequence the activities
To produce the schedule
To achieve the earliest completion date
To fit within the predetermined start and finish dates, and adjust the schedule if not meet the requirement

16. Planning of Project Implementation
Planning of project process
Planning of project organization
Planning of project contract

17. Planning of Project Process
Planning of project process – Programming – principles
Focus on the logic sequence of project activities and its overall impact on project output
Consider the project participants and their functionalities
Analyze the environmental restraints and resource availabilities
Aimed on the efficiency and flexibility of project implementation process
A network diagram is often used to illustrate the project process
A multi-level network diagram may be needed for a complex project or multi- project program

18. Multi-level Network DiagramC B

19. Planning of Project Process
Procedure of Programming
To collect project information regarding objectives, structure, participants, procedure, etc.
To collect project-related information, such as restraints, resource availabilities, etc.
To analyze collected information and identify major factors and critical conditions
To prepare the list of activities along with their duration and logic sequence information
To draft the program which takes account of those factors and satisfies the critical conditions

20. Planning of Project Process
Procedure of Programming
To optimize the program to level the resource input and minimize the negative impact
To chose the form to present the program

21. Planning of Project Organization
Principles
Based on the nature of the project
Consider the project tasks and project participants’ functionalities
Take account of the feature of project process and task sequences
Be responsive to environmental situation
A project organization chart is often used to illustrate project organization

22. Organization StructureB1 B2 B3
C22
C21
C23
. . .

23. Planning of Project Organization
Procedure
To review the basic nature of project and identify all the project participants
To analyze the project process and all the functionalities need to performed
To list project tasks and allocate tasks to project participants
To examine all possible interrelationships among project participants
To establish a project organization (team) which is suitable to those interrelationships
To determine the participants’ detailed responsibilities and tasks list based on the organization structure

24. Planning of Project Contract
Principle
To reflect the essential relationships of project organization
To facilitate project owner and project manager to best control the project
To allow all parties within project organization to be responsive and flexible to environmental conditions
To maintain the balance of rights and obligations among different parties
A contract structure is often used to illustrate such contract-based relationships

25. Pudong Airport Steel Structure Contract Structure
Shanghai Pudong Int. Airport Co.
Owner
Shanghai Construction
Managing Contractor
Shanghai Cst. 3
Part A
Shanghai Cst. 7
Part B
Shanghai Instl.
Installation
ADP
Conceptual design
ECADI
Preliminary design, CD
Shanghai. Mach. C.
Steel Str. Install
JiangnanShipyard
Shanghai. Boiler
Main steel stru. fabrication
Corridor steel stru.fabrication
Three-party contract

26. Project Scheduling Methods and Tools
Techniques
Bar Chart
Network Diagram
Arrow Diagram (Activity-on-arrow)
Precedence Diagram (Activity-on-node)
Linked Bar Chart
Software products
MS Project
Primavera

27. Project Scheduling Techniques
Bar Chart
Project activities are laid out on a time-scaled area, which shows
the duration of the activities,
the position on timescale,
and the identification of broadly defined work sequence

28. Project Scheduling Techniques
Bar Chart
Advantages
Widespread application
Simplicity of presentation
Quick and easy to prepare
Clear illustration of the relationship between activities in terms of time and sequence
Best suited to non-complex project
Disadvantages
Incapable of depicting interrelationship and dependencies between activities
No indication of critical activities
Not suitable for high degree of control for complex project

29. Project Scheduling Techniques
Network Diagram - Arrow Diagram (Activity-on-arrow)
Use arrow to present activities
Activities begin and end at events
The network of these arrows shows all sequential and restraints and relationships between activities
Not drawn to a time scale 1 6 4 2 5 3

30. Project Scheduling Techniques
Arrow Diagram (Activity-on-arrow)
Advantages
Easy to identify potential problems, eg. sequence delays, and likely effects
Easy to locate critical activities and the critical path
Capable of finding the possibilities and flexibility to optimize the schedule
Disadvantages
Requires more effort to prepare a network diagram
Requires more skill to present to a non-specialist
Time information is not well presented

31. Project Scheduling Techniques
Network Diagram - Precedence Diagram (Activity-on-node)
Use boxes to represent activities and all related information
Links between boxes shows all sequential and restraints relationships between activities
Not drawn to a time scale

32. Project Scheduling Techniques
Precedence Diagram (Activity-on-node)
Advantages
Compare to arrow diagram, it’s easier to construct and easier to understand
Strongly emphasize the activity sequence
Disadvantages
Requires more skill to prepare a network diagram
Requires more skill to present to a non-specialist
Time information is not well presented

33. Project Scheduling Techniques
Linked Bar Chart
Shows the activities in timescale with bar chart
Use vertical links between bars to show all sequential and restraints relationships between activities

34. Project Scheduling Techniques
Linked Bar Chart
Advantages
Possesses the clarity of presentation of bar chart
Retains the emphasis on activity duration and position on time scale
Illustrates the logical sequence and constraints of all activities
Disadvantages
Needs to be prepared from a network diagram
The links between activities might be confusing because of the position of linked activities

35. Project Scheduling Methods
Critical Path Method - CPM
A deterministic method that uses a fixed time estimate for each activity
Focus on the activities that are critical to project implementation in term of duration
Suitable for complex but fairly routine project with minimal uncertainty in the project completion time
Program Evaluation and Review Technique - PERT
Considers time variations and allows randomness in activity completion times
Suitable for large-scale, complex project with uncertainties in most of its activities

36. Project Scheduling Methods
Critical Path Method - CPM
Specify the individual activities
From work breakdown structure
Determine the sequence of those activities
Identify the immediate predecessors of each activities and form a list
Draw a network diagram
Several drafts may be needed if done manually
Estimate the completion time for each activity
Based on quotation, calculation, or assessment

37. Project Scheduling Methods
Critical Path Method - CPM
Identify the critical path (the longest path through the network)
Calculate the earliest/latest start/finish time of each activities (ES, EF, LS, LF)
Identify the longest-duration path through the network
Activities on the path can not be delayed without delaying the project
Update the CPM diagram as the project progresses

38. Critical Path Method A project network has n+1 nodes
The time of each node event occur will be x1, x2, …., xn
Minimize
z = xn
Subject to
x0 = 0
xj – xi – dij ≥ 0 for each activity (i,j)

39. Critical Path Scheduling Algorithms
Event Numbering Algorithms
Give the starting event number 0
Give the next number to any unnumbered event whose predecessor events are each already numbered
Repeat step 2 until all events are numbered
Earliest Event Time Algorithms
Let E (0) = 0
For j = 1, 2, 3, …, n (where n is the last event), let E(j) = maximum {E(i) + Dij}
Where the maximum is computed over all activities (i,j) that have j as the ending event

40. Critical Path Scheduling Algorithms
Latest Event Time Algorithms
Let L(n) equal the required completion time of the project
Note: L(n) must equal or exceed E(n)
For i = n-1, n-2, …, 0, let
L(i) = minimum {L(j) - Dij}
Where the minimum is computed over all activities (i,j) that have i as the starting event

41. Critical Path Scheduling Algorithms
The earliest start time
ES(i,j) = E(i)
The earliest finish time
EF(i,j) = E(i) + Dij
The latest finish time
LF(i,j) = L(j)
The latest start time
LS(i,j) = L(j) - Dij
An activity (i,j) is a critical activity if it satisfy all of the following conditions
E(i) = L(i)
E(j) = L(j)
E(i) + D(i,j) = L(j)

42. Critical Path Method Example
Activity
Description
Predecessors
Duration A
Site cleaning
--- 4 B
Removal of trees 3 C
General excavation 8 D
Grading general area 7 E
Excavation for trenches
B,C 9 F
Placing formwork and reinforcement for concrete 12 G
Installing sewer lines
D,E 2 H
Installing other utilities 5 I
Pouring concrete
F,G 6

43. Project Network

44. Earliest Event Time Calculation
Step 1
E(0) = 0
Step 2
j = 1
E(1) = Max{E(0) + D01} = Max{ } = 4
j = 2
E(2) = Max{E(0) + D02; E(1) + D12} = Max{0 + 3; 4 + 8} = 12
j = 3
E(3) = Max{E(1) + D13; E(2) + D23} = Max{4 + 7; } = 21
j = 4
E(4) = Max{E(2) + D24; E(3) + D34} = Max{ ; } = 24
j = 5
E(5) = Max{E(3) + D35; E(4) + D45} = Max{21 + 5; } = 30

45. Latest Event Time Calculation
Step 1
L(5) = E(5) = 30
Step 2
j = 4
L(4) = Min {L(5) - D45} = Min {30 - 6} = 24
j = 3
L(3) = Min {L(5) - D35; L(4) - D34} = Min {30 -5; } = 22
j = 2
L(2) = Min {L(4) - D24; L(3) - D23} = Min { ; } = 12
j = 1
L(1) = Min {L(3) - D13; L(2) - D12} = Min {22 - 7; } = 4
j = 0
L(0) = Min {L(2) - D02; L(1) - D01} = Min {12 - 3; 4 - 4} = 0

46. Identification of Activities on Critical Path
Activity
Duration
Dij
Earliest start time
E(i) = ES(i,j)
Latest finish time
L(j) = LF(i,j)
Latest start time
LS(i,j)
A(0,1) 4 0* 4*
B(0,2) 3 12 9
C(1,2) 8
12*
D(1,3) 7 22 15
E(2,3) 13
F(2,4)
24*
G(3,4) 2 21 24
H(3,5) 5 30 25
I(4,5) 6
30*

47. Activity Float Activity float Free float Independent float Total float
The difference between the earliest start time and latest start time
Free float
The amount delay that can be assigned to any one activity without delaying subsequent activities
Independent float
The amount of delay which can be assigned to any one activity without delaying subsequent activities or restricting the scheduling of preceding activities
Total float
The maximum amount of delay which can be assigned to any activity without delaying the entire project

48. Activity Float

49. Project Scheduling Methods
Program Evaluation and Review Technique - PERT
Identify the specific activities and milestones
Each activity has two events marking the beginning and end
Determine the proper sequence of the activities
May be combined with first step
Draw a network diagram
If done manually, several drafts may be needed to correctly portrayed the relationships among activities

50. Project Scheduling Methods
Program Evaluation and Review Technique - PERT
Estimate the time required for each activities
Each activity need three time estimates: optimistic time, most likely time, and pessimistic time
Expected time = ( Optimistic + 4xMost likely + Pessimistic ) /6
Variance = [( Pessimistic - Optimistic )/6]2
Determine the critical path
Calculate the expected earliest/latest start/finish time of each activities (ES, EF, LS, LF)

51. Project Scheduling Methods
Program Evaluation and Review Technique - PERT
Determine the critical path
Identify the longest-duration path through the network
Project completion time variance = ΣCompletion time variances of activities on critical path
Assuming a normal probability distribution for critical path, one can calculate the probability that a project will be completed by certain date
Update the PERT chart as project progresses

52. Project Scheduling Methods
Program Evaluation and Review Technique – PERT:
Advantages
Expected project completion time, it’s more objective
Probability of completion before certain specific time
Disadvantages
Activity time estimates are subjective, depending on judgment
Calculation is based on the assumed probability distribution
Probability of project completion time may not be the same as that of the critical path

53. Project Scheduling Tools
Software products
MS Project
Primavera

54. Jiwei Ma jiweima@hotmail.com
Thank You
Jiwei Ma