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Planning

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Department of Civil and Environmental Engineering. Massachusetts Institute of Technology ... Tankage. Roads. OBS/WBS. Linkages. Source: Shtub et al., 1994. Outline ... – PowerPoint PPT presentation

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Title: Planning


1
1.040/1.401Project ManagementSpring
2007Lecture 7

Planning Basics
Dr. SangHyun Lee
lsh_at_mit.edu
Department of Civil and Environmental
Engineering Massachusetts Institute of Technology
2
Project Management Phase
DESIGN PLANNING
DEVELOPMENT
OPERATIONS
CLOSEOUT
FEASIBILITY
Fin.Eval.
Organization
Risk
Estimating
Planning
3
Outline
  • Planning Hierarchical Project Structures
  • Work Breakdown Structure
  • Organization Breakdown Structure
  • Cost Breakdown Structure

4
Planning Components
  • What Work Breakdown Structure
  • How Plans and Specifications
  • Who Organization Breakdown Structure
  • How much Cost Breakdown Structure (via estimate)
  • When Schedule

5
Outline
  • Planning Hierarchical Project Structures
  • Work Breakdown Structure
  • Organization Breakdown Structure
  • Cost Breakdown Structure

6
Work Breakdown Structure
  • A WBS is a deliverable-oriented grouping of
    project components that organizes and defines the
    total scope of the project
  • Work not in the WBS is outside the scope of the
    project
  • WBS is usually an operative tool used by
    contractors
  • First step towards constructing a schedule
  • Central role in project monitoring and control

7
WBS Example
different summary level
Source Shtub et al., 1994
8
Work Package
  • Lowest level
  • Distinguish from Others
  • Single Responsible Organization
  • Assigned Start and Finish
  • Assigned Budget
  • Limited Duration

9
Types of WBS
  • Project WBS
  • Operative tool for monitoring and control
    contractor work
  • Contractual WBS
  • Defines the level of reporting that the seller
    will provide the buyer
  • May include less detail than Project WBS
  • Agreed between owner and contractor

10
Functional Approach
GAS-STEAM COMBINED POWER PLANT
level 0 level 1 level 2 level 3 level
4 level 5
MAIN FUNCTIONS OF PLANT
INTERFACES
STEAM
GAS
ITEMS
COMPRESSION STATION
TURBINE
GENERATOR
UNITS
COMPRESSORS
ENCLOSURE
GAS TREATMENT
SUB-UNITS WORK PACKAGES
FOUNDATIONS
COMPRESSOR 1
COMPRESSOR 2
INSTALLATION
DESIGN
PROCUREMENT
11
Physical Space Approach
  • Project
  • Main building
  • 1st floor
  • Structures
  • Plumbings
  • Electrical
  • HVAC
  • 2nd floor
  • Service building
  • Structures
  • Plumbings
  • Electrical
  • HVAC

12
Procedure Approach
  • Project
  • Feasibility
  • Design
  • Basic
  • Detail
  • Bid documents
  • Shop drawings
  • Bid
  • Construction
  • Foundations subcontract
  • Main building
  • Piles
  • Concrete foundations
  • Service building
  • Piles
  • Concrete foundations
  • Steel erection
  • Finishings
  • Commissioning

13
WBS CSI Master Format - Example
Sample
Source Schaufelberger et al., 2002
14
Outline
  • Planning Hierarchical Project Structures
  • Work Breakdown Structure
  • Organization Breakdown Structure
  • Cost Breakdown Structure

15
Organization Breakdown Structure
  • Decomposition of necessary resources to perform
    job
  • Identification organization of the resources
    responsible with carrying out activities
    associated with the project
  • Used to keep track of specific work assignments
    resource allocations

16
Organization Breakdown Structure
  • Project resources
  • Project management team
  • Project manager
  • Construction superintendent
  • Field superintendent
  • Office manager
  • Scheduler
  • Accounter/controller
  • Field engineer
  • Construction force
  • Worker
  • Subcontractor
  • Electrical
  • Plumbing
  • Insulation
  • Tankage
  • Roads

17
OBS/WBS Linkages
Source Shtub et al., 1994
18
Outline
  • Planning Hierarchical Project Structures
  • Work Breakdown Structure
  • Organization Breakdown Structure
  • Cost Breakdown Structure

19
Cost Breakdown Structure (CBS)
  • Breakdown of the costs of the various components
    of the structure including all work done by the
    subcontractors
  • Serves as a basis for subsequent monthly pay
    requests by the contractor
  • Used to continuously compare costs as they
    actually occur with the budget

20
Cost Breakdown Structure (CBS)
Source Shtub et al., 1994
21
Two Main Approaches
  • CBS WBS
  • CBS is the project cost control structure
  • CBS ? WBS
  • CBS is the corporate multi-project cost control
    structure
  • Usually the case of a firm that has an integrated
    cost control system

22
Diverse Combinations
  • WBS OBS Task assignments
  • CBS OBS Budget monitoring of crews, etc.
  • OBS Schedule Time-specific crew assignments
  • CBS Schedule Cost monitoring
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