1.040/1.
401
Project Management
Spring 2007
Lecture 7
Planning Basics
Dr. SangHyun Lee
[email protected] Department of Civil and Environmental Engineering
Massachusetts Institute of Technology
Project Management Phase
DESIGN DEVELOPMENT CLOSEOUT OPERATIONS
FEASIBILITY
PLANNING
Fin.&Eval.
Organization
Risk
Estimating
Planning
Planning
Outline
Planning – Hierarchical Project Structures
Work Breakdown Structure
Organization Breakdown Structure
Cost Breakdown Structure
Planning Components
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
Work Breakdown Structure
Organization Breakdown Structure
Cost Breakdown Structure
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
WBS: Example different
summary level
Source: Shtub et al., 1994
Work Package
Lowest level
Distinguish from Others
Single Responsible Organization
Assigned Start and Finish
Assigned Budget
Limited Duration
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
Functional Approach
GAS-STEAM COMBINED
POWER PLANT
level 0
MAIN FUNCTIONS OF PLANT
level 1 GAS STEAM INTERFACES
level 2 ITEMS
TURBINE GENERATOR COMPRESSION STATION
level 3
COMPRESSORS GAS TREATMENT ENCLOSURE UNITS
level 4
COMPRESSOR 1 COMPRESSOR 2 FOUNDATIONS SUB-UNITS
level 5
DESIGN PROCUREMENT INSTALLATION WORK PACKAGES
Physical Space Approach
Project
Main building
1st floor
Structures
Plumbings
Electrical
HVAC
2nd floor
Service building
Structures
Plumbings
Electrical
HVAC
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
WBS: CSI Master Format - Example
NORTHWEST CONSTRUCTION COMPANY
1242 First Avenue, Cascade, Washington 98202
(206) 239-1422
Work Breakdown Structure
Huna Office Building
7/15/2000
CSI CSI
Description Description
Division Division
1 Job Site General conditions 9 Finishes:
2 Site work: Drywall
Earthwork & Utilities Painting
Paving Acoustical Ceilings
Walks & Miscellaneous Sitework Floor Covering: Carpet
3 Concrete: Floor Covering: Ceramic, Vinyl, Base
Purchase Reinforcement Steel 10 Specialties
Foundations 11, 12, 13 Equipment, Furnishings, & Special
Walls & Slabs Construction
4 Masonry 14 Conveying Systems (Elevator)
5 Structural and Miscellaneous Metals 15 Mechnical Systems:
6 Wood & Plastic Plumbing
Rough Carpentry Fire Protection
Finish Carpentry / Wood Floors HVAC
7 Thermal & Moisture Protection Controls
Insulation 16 Electrical Systems
Roof & Accessories
Gutters & Downspouts
8 Doors, Windows, Glass
Doors
Windows & Storefront Sample
Door Hardware
Source: Schaufelberger et al., 2002
Outline
Planning – Hierarchical Project Structures
Work Breakdown Structure
Organization Breakdown Structure
Cost Breakdown Structure
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
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
OBS/WBS
Linkages
Source: Shtub et al., 1994
Outline
Planning – Hierarchical Project Structures
Work Breakdown Structure
Organization Breakdown Structure
Cost Breakdown Structure
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
Cost Breakdown Structure (CBS)
MASTER LIST OF PROJECT COST ACCOUNTS
Subaccounts of General Ledger Account 80.000
PROJECT EXPENSE
Project Work Accounts .100 - .699
100 Clearing & Grubbing 245 Precast Concrete
101 Demolition 260 Concrete forms
102 Underpinning .01 footings
103 Earth Excavation .05 grade beams
104 Rock Excavation .07 slab on grade
105 Backfill .08 beams
115 Wood structural piles .10 slab
116 Steel structural piles .11 columns
117 Concrete structural piles .12 walls
121 Steel sheet piling 280 Structural Steel
240 Concrete poured 350 Masonry
.01 footings .01 8 in. block
.05 grade beams .02 12 in. block
.07 slab on grade .06 common brick
.08 bcarns .20 face brick
.10 slab on forms .60 glazed tile
.11 columns 400 Carpentry
.12 walls 440 Millwork
.16 stairs 500 Miscellaneous Metals
.20 expansion joints .01 metal door frames
.40 screeds .20 window sash
.50 float finish .50 toilet partitions
.51 trowel finish 560 Finish Hardware
.60 rubbing 620 Paving
.90 curing 680 Allowance
685 Fencing
Source: Shtub et al., 1994
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
Diverse Combinations
WBS + OBS: Task assignments
CBS + OBS: Budget monitoring of crews, etc.
OBS + Schedule: Time-specific crew assignments
CBS + Schedule: Cost monitoring
