1 0401 401 Project Management Spring 2007 Lecture
- Slides: 22
1. 040/1. 401 Project Management Spring 2007 Lecture 7 Planning Basics Dr. Sang. Hyun Lee lsh@mit. edu Department of Civil and Environmental Engineering Massachusetts Institute of Technology
Project Management Phase FEASIBILITY Fin. &Eval. Risk DESIGN PLANNING DEVELOPMENT CLOSEOUT Organization Estimating Planning OPERATIONS
Outline Ø Planning – Hierarchical Project Structures § Work Breakdown Structure § Organization Breakdown Structure § Cost Breakdown Structure
Planning Components n n n What: Work Breakdown Structure How: Plans and Specifications Who: Organization Breakdown Structure How much: Cost Breakdown Structure (via estimate) When: Schedule
Outline § Planning – Hierarchical Project Structures ØWork Breakdown Structure § Organization Breakdown Structure § Cost Breakdown Structure
Work Breakdown Structure n A WBS is a deliverable-oriented grouping of project components that organizes and defines the total scope of the project n Work not in the WBS is outside the scope of the project n WBS is usually an operative tool used by contractors n First step towards constructing a schedule n Central role in project monitoring and control
WBS: Example different summary level Source: Shtub et al. , 1994
Work Package n Lowest level n Distinguish from Others n Single Responsible Organization n Assigned Start and Finish n Assigned Budget n Limited Duration
Types of WBS n Project WBS n n Operative tool for monitoring and control contractor work Contractual WBS n Defines the level of reporting that the seller will provide the buyer n May include less detail than Project WBS n Agreed between owner and contractor
Functional Approach GAS-STEAM COMBINED POWER PLANT level 0 level 1 level 2 GAS TURBINE level 3 GENERATOR STEAM INTERFACES COMPRESSION STATION MAIN FUNCTIONS OF PLANT ITEMS UNITS COMPRESSORS GAS TREATMENT COMPRESSOR 1 COMPRESSOR 2 FOUNDATIONS SUB-UNITS DESIGN PROCUREMENT INSTALLATION WORK PACKAGES level 4 level 5 ENCLOSURE
Physical Space Approach n Project n Main building n 1 st floor n n n Structures Plumbings Electrical HVAC 2 nd floor Service building n n Structures Plumbings Electrical HVAC
Procedure Approach n Project n n Feasibility Design n n n Basic Detail Bid documents Shop drawings Bid Construction n Foundations subcontract n n n Main building n Piles n Concrete foundations Service building n Piles n Concrete foundations Steel erection Finishings Commissioning
WBS: CSI Master Format - Example Source: Schaufelberger et al. , 2002
Outline § Planning – Hierarchical Project Structures üWork Breakdown Structure ØOrganization Breakdown Structure § Cost Breakdown Structure
Organization Breakdown Structure n Decomposition of necessary resources to perform job n Identification & organization of the resources responsible with carrying out activities associated with the project n Used to keep track of specific work assignments & resource allocations
Organization Breakdown Structure n Project resources n n Project management team n Project manager n Construction superintendent n Field superintendent n Office manager n Scheduler n Accounter/controller n Field engineer Construction force n Worker n Subcontractor n Electrical n Plumbing n Insulation n Tankage n Roads
OBS/WBS Linkages Source: Shtub et al. , 1994
Outline § Planning – Hierarchical Project Structures üWork Breakdown Structure üOrganization Breakdown Structure ØCost Breakdown Structure
Cost Breakdown Structure (CBS) n Breakdown of the costs of the various components of the structure including all work done by the subcontractors n Serves as a basis for subsequent monthly pay requests by the contractor n Used to continuously compare costs as they actually occur with the budget
Cost Breakdown Structure (CBS) Source: Shtub et al. , 1994
Two Main Approaches n CBS = WBS n n CBS is the project cost control structure CBS ≠ WBS n CBS is the corporate multi-project cost control structure n Usually the case of a firm that has an integrated cost control system
Diverse Combinations n WBS + OBS: Task assignments n CBS + OBS: Budget monitoring of crews, etc. n OBS + Schedule: Time-specific crew assignments n CBS + Schedule: Cost monitoring
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