NOTES

A. INTRODUCTION

Management - is the art of getting things done through people. (Mary Parker Follet)
I. is the processes of planning, organizing, leading and controlling the effort of
organization members and of using all other organization and resources to
achieve stated organizational goals. (Stoner & Wankel)

Measurement of Management Performance

Peter Drucker, one of the most respected writers on management has argued that a
manager’s performance can be measured in terms of two concepts:
1. Efficiency - doing things right
2. Effectiveness - doing the right things
Efficiency is the ability to get things done correctly. It is an input-output concept. An efficient
manager is the one who achieves outputs, or results, that measure up to the inputs (labor, materials,
and time) used to achieve them. Managers who are able to minimize the cost of the resources they
use to attain their goals are acting efficiently.
Effectiveness on the other hand, is the ability to choose appropriate objectives. An effective
manager is the one who selects the right things to get things done. It must be remembered that no
amount of efficiency can compensate for lack of effectiveness.
Peter Drucker further said that effectiveness rather than efficiency is essential to business, the
pertinent questions is not how to do things right, but how to find the right things to do, and to
concentrate resources and effort on them.

Types of Managers
Managers can be classified in two ways: by their level in the organization and by the range
of organizational activities for which they are responsible.

According to the Management Level:

1. First Line Managers – direct operating employees only, they do not supervise
other managers. First level managers are often called supervisors.
ex. Section/Department Head, Foreman
 Middle Managers – direct the activities of other managers and sometimes also those
of operating employees. Middle managers’ principal responsibilities are to direct the
activities that implement their organizations’ policies and to balance the demands of
their supervisors with the capacities of their subordinates.
ex. Dean, Director, Plant Manager
Top Manager – is responsible for the overall management of the organization. It
establishes operating employees and guides the organization’s interactions with its
environment.
ex. President, Vice-President, Chief Executive Officer

According To The Range Of Organizational Activities:

2 Functional Manager – is the responsible for only one organizational activity, such as
production, marketing, sales, etc.
3 General Manager – oversees a complex unit such as a company, a subsidiary, or an
independent operating division.
Managerial Skill and Roles:
Managerial Skills according to Robert Katz
5 Technical Skill - is the ability to use the tools, procedures and techniques of a
specialized field.
6 Human Skill - is the ability to work with understands and motivates other
people, either as individual or as a group.
7 Conceptual Skill - is the mental ability to coordinate and integrate all of the
organization interest and activities. It involves the manager's ability to see the
organization as a whole and to be understood how its parts depend on each
other.

Bottom

Middle

Top
Managerial Roles According to Henry Mintzberg:

Formal Authority and Status

Interpersonal Roles Information of Roles Decisional Roles

Figurehead Monitor Entrepreneurs

Leader Disseminator Disturbance
Liaison/ Ambassador Spokesman Handler
Resource
Allocator
Negotiator

Figure Head – As a figurehead he performs certain ceremonial duties such as: greeting of visitors,
attending a subordinates wedding, taking customer to lunch and other similar activities. Leader – The
manager guide, conduct, or direct his subordinates or entity. He is responsible in hiring , training,
motivating, and encouraging employees.
Liaison – The manager maintain communication between groups or organization other than his
subordinates
Monitor – The manager constantly looks for information that can be used to advantage.
Subordinates are questioned and unsolicited information is also collected.
Disseminator – The manager give out or spread information to the group or organization that would
otherwise be inaccessible to them.
Spokesperson – The manager transmits some of the information he or she has collected to individuals
outside the unit – or even outside the organization. He also keeps his superiors satisfied by keeping them
well informed.
Entrepreneur – The manager organizes, operates, and assumes the risk for a business venture.
He also initiates change voluntarily.
Disturbance Handler - A person who keep or handles the peace and order situation of the organization.
As a disturbance handler, he responds to situations that are beyond his control such as strikes, bankrupt
customer, etc.
Resources Allocator - The manager is responsible for deciding how and to whom the resources of the
organization and the manager’s own time will be allocated.
Negotiator – The manager arranges or settles agreement/contract in the group or organization.
Engineering Management

A field that concentrates on the application of engineering principles for the effective planning and
efficient operations of managing manufacturing or industrial operations.

Is a specialized form of management that is concerned with the application of engineering

principles to business practice. Engineering management is a career that brings together the
technological problem-solving savvy of engineering and the organizational, administrative, and
planning abilities of management in order to oversee complex enterprises from conception to
completion.

Is a term that is used to describe a specialized form of management that is required to successfully
lead engineering personnel and projects. The term can be used to describe either functional
management or project management- leading technical professionals who are working in the fields
of product development, manufacturing, construction, design engineering, industrial engineering,
technology, production, or any other field that employs personnel who perform an engineering
function.

The Management Process

J. Planning
K. Organizing
L. Leading
M. Controlling
1. PLANNING
Before managers can organize, lead or control they must plans that give purpose and
direction to the organization, deciding what needs to be done, when and how it needs to be
done and who is to do it.
Planning therefore is the first step in managing an organization and can be seen as the
manager's most fundamental responsibility at all levels.

Four Basic Steps of Planning:

1. Establish a goal or set of goals. Planning begins with decisions about what the
organization or submit wants or needs. Without a clear definition of goals,
organizations to focus their resources effectively.
2. Define the present situation. How far is the organization from its goals? What
resources are available for reaching the goals? Only after the current state of affairs is
analyzed can plans be drawn up to chart further progress.
3. Identify the aids and barriers to the goals. What factors in the internal and external
environments can help the organization reach its goals? What factors might create
problem? Although it is difficult to do, anticipating future situations, problems and
opportunities is an essential part of planning.
4. Develop a plan or set of actions for reaching the goals. The final step in the planning
process involves developing various alternative courses of action for reaching the
desired goal or goals, evaluating these alternatives and choosing from among them the
most suitable alternative for reaching the goal.

O
Step 1 Step 2 Step 3 Step 4
Establish the Define the Determine Aids Develop a Set of
goals Present and Barries Action A
Situation
L

Two main types of Plans:

1.0 Strategic Plans - design to meet the broad objectives of the organization - to implement the
mission that provides the unique reason for the organization's existence.
1.1 Operational Plans - provides the details of how the strategic plans will be accomplished.

Types of operational Plans:

2.1 Single-use plan is developed to achieve specific purposes and dissolve when these have
been accomplished.
 2. Program covers a relatively large set of activities. The programs show (1) the major
steps required to reach an objectives, (2) the organization unit or member responsible
for each step and (3) the order and timing of each step.
3. Projects are the smaller and separate portions of programs.
4. Budgets are statements of financial resources set aside for specific activities in a
given period of time.

2.2 Standing Plans are standardized approaches for handling recurrent and predicable
situations.
Policy is a general guideline for decision making. It sets up boundaries around
decisions, including those that can be made and shutting out those that cannot.
Standard Procedures provides a detailed set of instructions for performing a sequence
of actions that occurs often or regularly.
Rules are statement that a specific action must not be taken in a given situation. They
are the most explicit of standing plans and not guides to thinking or decision making.
Rather they are substitutes for them.
2. ORGANIZING
It is a process of making the organization's structure fit with its objectives, its
resources, and its environment.
Organization Structure is the arrangement and interrelationship of the component
parts and position's of a company.

The Organizing Process:

4 Detailing all the work that must be done to attain the organization's goals. Every
organization is created with a set of purposes - hospitals are created to care for the sick,
basketball team are created to win games while business are created to sell goods and
services. Each of this purpose can be achieved if the tasks of the organization as a whole
must fist were determined.

5 Dividing the total load into activities that can logically and comfortably be performed
by one person or by a group of individuals. Organizations are created because one
person alone cannot perform the work they are meant to accomplish. Thus, the work of
the organizaion must be appropriately divided among its members.

6 Combining the work of the organization's members in logical and efficient manner.
As an organization expands in size and hires more people to perform various activities,
it becomes necessary to group individuals whose assigned tasks are related. Sales,
human resources, production, accounting and marketing are some typical departments
in manufacturing organizations.
 8 Setting up a mechanism to coordinate the work of organization members into
unified, harmonious whole. As individuals and departments carry out their
specialization activities, the overall goals of the organization may become submerged
or conflicts between organization members may develop. Coordinating mechanism
enable members of the organization's to keep sight of the organization's goals and
reduce inefficiency and harmful conflicts.

9 Monitoring the effectiveness of the organization and making adjustments to

maintain or increase effectiveness. Because organizing is an on-going process,
periodic reassessment of the four preceding steps is necessary. As organizations grow
and situations change, the organization's structure must be evaluated to be sure it is
consistent with effective and efficient operation to meet present needs.

Elements of organizational structure

6 Specialization of Activities refers to the specification of individual and group work
tasks throughout the organization and the aggregation of this task into work units.
7 Standardization of activities refers to the procedure used by the organization to ensure
the predictability of its activities. Many of these procedures are established by
formalizing the activities of the relationships within the organization. To standardize is
to make uniform and consistent.
8 Coordination of activities refers to the procedures that integrate the functions of
submits within the organization.
9 Coordination of activities refers to the location of decision-making power. In a
centralized organizational structure, a single individual makes decisions at high level
by top managers or even. In a decentralized structure, the decision making power is
dispersed among more individuals at middle and at lower management levels.
10 Size of the work unit refers to the number of employees in a work group.

Determinants of Organizational Structure

8 Strategy and organizational structure: According to Alfred D. Chandler says that
"structure follows strategy," it means that the mission and overall goals of organizations
will help shape its design. Strategy will determine how the lines of authority and
channels of communications are set up between various managers and submits. It will
influence the information that flows along those lines, as well as the mechanisms for
planning and decision making.
9 Technology as a determinant of structure: The nature of the technology used in an
organization to create its products also influences that way organization is set up.
Technology also influences the coordination of mechanism the level at which decisions
are made, and the size of organizational units.
10 People as a determinant of structures: The people involved in the organization's effect
its structure. Managers make decisions relating to the lines of communication and
authority and the relationship between work units. In making these decisions, managers
are influenced by their own need to work with each other in specific ways, must also
be taken into account when work units are set up and tasks allocated. In addition, people
outside, the organization influences its structure, which provide for
 regular interactions with clients or customers, suppliers, and others in the external
environment.
1. Size and structure: Both the overall size of an organization and the size of its sub-units
influence its structure. Larger organizations tend to have greater specification of
activities and more formalized procedures.

The Organizational Chart:

As company grows, the number of work units and submits' increases and layers of
supervision are added. Managers and subordinates alike become further removed from the eventual
results of their actions. They need a clear understanding of how their activities fit into larger picture
of what the organization is and does. Most organizational structures are too complex to be
conveyed verbally. To show the organization's structure, managers customarily draw up an
organization chart, which diagrams the functions, department, or position of the organization and
shows how they are related. The organization chart illustrates five major aspects of an
organization's structure. They are:
1. The division of work
2. Managers and Subordinates
3. The type of Work Being Performed
4. The Grouping of Work Segments
5. The Levels of Management

The three Major Formal Organizational Structure

A. Functional Organization is perhaps the most logical and basic form of

departmentalization. It is used mainly by smaller firms that offer a limited line of products,
because it makes efficient use of specialization resources.

Advantages:
Suited to a stable environment
Fosters development of expertise
Offers colleagues for specialists
Requires little internal coordination
Requires fewer interpersonal skills
Disadvantages:
1. Slows response time in large organizations
2. Causes bottlenecks due to sequential task performance
3. Does not encourage innovation; has narrow perspective
4. Fosters conflicts over product priorities
5. Does not foster development of general managers
6. Obscure responsibility for the overall task.
a) Product/ market Organization is used by large, multiproduct companies such as General
Motors. When a company departmentalization becomes too complex for the functional
structure, top managers will generally create semiautonomous divisions, each of which
designs, produces, and makes its own products. A product or market organization can follow
one of the three major patterns:
Division by product
Division by geography
Division by customers

Advantages:
1. Suited to fast change
2. Allows for high product visibility
3. Allows full-time concentration on tasks
4. Clearly defines responsibilities
5. Permits parallel processing of multiple tasks
6. Facilitates the training of general managers
Disadvantages:
1. Fosters politics in resouce allocation
2. Does not foster coordination of activities among divisions
3. Encourages neglect of long-term priorities
4. Permits in-depth competencies to decline
5. Creates conflict between divisional tasks and corporate priorities.
C. Matrix Organization attempts to combine the benefits of Functional Organization and
Product/ Market Organization while avoiding their drawbacks. In a matrix organization, the
employees have two superior - that is they are under dual authority.
 Advantages:
a) Gives flexibility to organization
b) Stimulates interdisciplinary cooperation
c) Involves and challenges people
d) Develops employee skills
e) Frees top management for planning
f) Motivates people to identify with end product
g) Allows experts to be moved to crucial areas as
needed. Disadvantages:
b) Risks creating a feeling of anarchy
c) Encourage power struggles
d) May lead to more discussions than action
e) Requires high interpersonal skills
f) Is costly to implement
g) Risk duplication of effort by project teams
h) Affects morale when personnel are rearranged.

MANAGERIAL LEADERSHIP
It is the process of directing and influencing the task related activities of group members.

Three important implication of the definition above. First, Leadership must involve people -
subordinates or followers. By willingness to accept directions from the leaders, group members
help define the leader's status and make the leadership process possible. Without subordinates, all
the leadership qualities of manager would be irrelevant. Second, Leadership involves an unequal
distribution of power among leaders and group members. Leaders have the authority to direct
some of the activities of group members who cannot similarly direct the leader's activities.
Nonetheless, group members will obviously affect those activities in a number of ways. Third,
Leaders also influence subordinates in a variety of other ways.
Influence are actions or examples that either directly or indirectly cause a change in behavior or
attitude of another group or person.

Power is the ability to exert influence.

Source of Leaders Power

c) Reward Power is based on one person (the influencer) having the ability to reward
another person (the influences) for carrying out orders or meeting other requirements.

d) Coercive Power is the negative side of reward power. If is based on the influencer's
ability to punish the influencee for not meeting requirements. Punishment may range
from loss of a minor privilege to loss of a job. Coercive power is usually used to
maintain a minimum standard of performance or conformity among subordinates.

e) Legitimate Power corresponds to the term authority. This exists when a subordinate or
influencee acknowledges has the " right" or is lawfully entitled to exert influence within
certain bounds. It is also implied that the influncee has an obligation to accept this
power.

f) Expert Power is based on the perception or belief that the influencer has some
relevant expertise or special knowledge that the influncee does not.

g) Referent Power is based on the influencee's desire to identify with or imitate the
influencer. This can be held by a person or a group of person. Referent power also
functions at peer level - charismatic colleagues may sway us to their sides in department
meetings.

Personality and Situational Factors that Influence Effective Leadership

d) The Leader's Personality, Past Experiences, and Expectations. The manager's values,
background, and experiences will affect his or her choice of style. A manager who had
experience success in exercising little supervision or who values the self-fulfillment needs of
subordinates may adopt an employee oriented style of leadership. While, a manager who
distrusts subordinates or who simply likes to manage all work activities directly may adopt a
more authoritarian role. In short, managers develop the leadership style with which they are
most comfortable.
e) Superiors Expectation's and Behavior. The leadership style that a manager's superiors
approve is very important in determining the orientation a manager will select. Because of the
power of superiors to dispense organizational rewards, such as bonuses and promotions,
superiors clearly will affect the behavior of lower level managers. In addition, lower level
managers tend naturally to model themselves after their superiors.
f) Task Requirements. The nature of subordinates' job responsibilities will also affect the type
of leadership style a manager will use
e) Peers' Expectations and Behavior. One's fellow mangers are an important reference group.
Managers form friendships with their colleagues in the organization, and the opinions of these
colleagues matter to them. And the attitude of a manager's peers can often affect how
effectively the manager performs.
f) Subordinates' Characteristic, Expectations, and Behavior. Subordinates play a critical role
in influencing the manager's leadership style. They are, after all, the people whom that style is
supposed to affect. Ultimately, the response of subordinates to the manager's leadership
determines how effective the manager will be.
g) Organizational Culture and Policies. The culture of an organization shapes both the leaders
behavior and the expectations of subordinates. The stated policies of the organization also
affect a manager's leadership style.

MANAGEMENT CONTROL

Is the process through which managers assure that actual activities conformed to planned
activities.
Management Control is a systematic effort to set performance standards with planning
objectives, to design information feedback systems, to compare actual performance with these
predetermined standards, to determine whether there are any deviations and to measure their
significance, and to take any action required to assure that all corporate resources are being used
in the most effective and efficient way possible in achieving corporate objectives.

Basic Steps in the Control Process:

1. Establish Standard and Methods for Measuring Performance. This step involve standards
and measurements for everything from sales and production targets to worker attendance and
safety records. For this step to be effective, the standards must be specified in meaningful terms
and accepted by the individuals involved. The methods of measurement should also be
accepted as accurate.

2. Measure the Performance. Like all aspects of control, this is an ongoing, repetitive process
with the actual frequency dependent on the type of activity being measured.
3. Measure the Performance Match the Standards. This is the easiest step in the control process.
It is just a matter of comparing measured results with the targets or standards previously set. If
performance matches the standards, managers may assume that "everything is under control".

4. Take corrective action. This corrective action may involve a change in one or more activities
of the organization's operation, or it may involve a change in the standards originally establish.

Organizational Factors Creating the Need for Control

Change. Even in the most stable industries, change is an inevitable. This is because market
shifts, new product emerge, new materials are discovered, new regulations are passed, etc.
Complexity. Today's vast organizations require a much formal and careful approach.
Diversified product lines must be watched closely to ensure that quality and profitability are
maintained, sales in retailed outlets need to be recorded accurately and analyzed and the
organization's various markets, foreign and domestic, require close monitoring.
Decentralization also cause complexity today organization's.
Mistakes. If superiors and subordinates never made mistakes, managers could simply establish
performance standards and note significant and unexpected changes in the environment. But
organization members do make mistakes thus a control system allows managers to detect these
mistakes before they become crucial.
Delegation. When managers delegate their authority to subordinates, their responsibility to
their own superiors is not diminished. The only way managers can determined if their
subordinates are accomplishing the tasks that have been delegated to them is implementing a
system of control.

Types of Control Methods

Pre-action Control. Pre-action control is called pre-control. This ensure that before an action
is undertaken the necessary human, materials, and financial resources have been budgeted.
When thee time for action occurs, budgets make sure the requisite resources will be available
in the types, quality, quantities, and locations needed.
Steering Control. Steering control is also called feed forward controls. They are designed to
detect deviations from some standard or goal and to allow corrections to be made before a
particular sequence of actions is completed. Steering control is effective only is effective only
if the manager is able to obtained timely and accurate information about changes in the
environment or about progress toward the desired goal.
Yes/ No or Screening Control. Yes/ no provides a screening process in which specific aspects
of a procedure must be approved or specific conditions met before operations may continue.
Post-action Control. As the term suggests, post-action controls measure the results of a
completed action. The causes of any deviation from the plan or standard are determined and
the findings are applied to similar future activities. Post-action controls are also used as a basis
for rewarding or encouraging employees.
Characteristic of Effective Control Systems
a) Accurate
b) Timely
c) Objective and Comprehensible
d) Focused on Strategic Control Points
e) Economically Realistic
f) Organizationally Realistic
g) Coordinated with the Organization's work Flow
h) Flexible
i) Prescriptive and Operational
j) Accepted by Organization Members

RELATIVE AMOUNT OF TIME THAT MANAGERS SPEND ON

THE FOUR MANAGERIAL FUNCTIO
 I. PROJECT PLANNING AND
SCHEDULING
Planning is the process of breaking a project down into specific tasks, and defining the sequences in
which those tasks can or must be performed. Planning is interestingly not the same as scheduling. Scheduling
is the process of defining the timeframe in which each task will be performed and thereby determining the
start and completion dates for each project.
It is therefor appropriate to say that planning defines “what” is to be done while scheduling defines
“when” it is to be done. The resource plan describes “how” the work is done.
Project Management begins with planning. Unless planning is effective other management functions
cannot be effective. Unfortunately, construction projects vary so much that no single plan can be developed,
each project must be planned individually.
Planning is a means of:
5. Organizing the work on the project.
6. Deciding who does what, when, how and for how much.
7. Determining the resources required.
8. Allocating these resources on a time-phased basis.
9. Allocating and defining responsibility.
10. Communicating between all those involved on a project.
11. Coordinating all the activities and people involved.
12. Controlling progress.
13. Estimating time to completion.
14. Handling unexpected events and changes.

It is also a:
5. Basis for the authority of the project manager.
6. Basis for the budgeting and financial control of the project.
7. Basis for self analysis and learning, i.e. real experience.
8. Means of orienting people to look ahead, and
9. Way of initiating and maintaining a sense of urgency that is time consciousness

The Potential Advantages of Planning

Planning pre-supposes a willingness by management to; Spent a Time, Energy, and Money
The planning process is utilized to reach distant goals that will assure both survival and
optimization of long-term profits.
Planning can be used to organize the project task and resources within realistic time frames.

The Project Planning System

The flowchart below shows the project planning system which consist basically of three phases namely;
Planning Phase, Scheduling Phase and Control-Monitor Phase.

Planning Phase:
The flowchart starts with the establishment of the baseline or the basic input data. Project documents
such as bid document, technical specifications, drawing, etc. are reviewed to gather relevant data
needed in planning and estimating. A meeting of the project management team from project manager
and other key personnel who have something to do with the project shall be held to discuss methods
and techniques and other matters that will affect project execution.
Work Breakdown Structure shall be established and each component activity shall be properly
defined indicating the activity codes, cost center, responsibility codes, etc. to permit proper costing
and work assignment during implementation. Network diagram shall be developed following the
principles and procedures of networking techniques.
 2

PROJECT PLANNING SYSTEM FLOWCHART

1
PROJECT
PLANNING DOCUMENT

7
WORK
BREAKDOWN

3 ESTIMATING 4 NETWORK
DIAGRAMMING

10
NETWORK
ANALYSIS
SCHEDULING

NO
YES
11
TIME
SCHEDULING

12
RESOURCES
SCHEDULING

NO

YES
11
MONITORING

9
EVALUATION 10 COST
CONTROL

NO
ACCOUNTING

YES
11 UPDATING
12
DOCUMENTA-
TION
 3

Scheduling Phase:
Once the network and estimate are completed, scheduling tables, charts, graphs, cash flow are
prepared in the desired sequences which will be presented to project management for further review
and evaluation.

Control-Monitor Phase:
After the plan and schedule have been fully developed, the project management team can now start
the implementation of the project. Activities are monitored and status data are gathered and
compiled. Deviations are computed and different types of reports are prepared to give top
management, the project management team and other concerned groups, accurate and timely
information regarding the actual progress of the project. If the deviation is beyond the tolerable limit
which may result into chaos and delay, then the management will immediately make necessary steps
to improve performance or update the plan to bring back the remaining work on schedule.

List of the Typical Activities which Occur as a Result of Poor Planning

2. Wild Enthusiasm
3. Disillusionment
4. Chaos
5. Search for the guilty
6. Punishment of the innocent
7. Promotion of the non-participant
8. Definition of the requirements

The Work Breakdown Structure

Once the project objective has been defined, the next step is to determine what work elements, or
activities, need to be performed to accomplish it. One of the project management tools that can help PM in
attaining this task is the Work Breakdown Structure (WBS). The WBS provides a way for identifying what
must be done, who will do it, how long it will take, and how much it will cost. Thus, WBS ties the entire
project together.

In any project, whether large or small, it is necessary to develop a well-defined Work Breakdown
Structure (WBS) that divides the project into identifiable parts that can be managed. The concept of the WBS
is simple. In order to manage a whole project, one must manage and control each of its parts. The WBS is
the cornerstone of the project work plan. It defines the work to be performed, identifies the needed expertise,
assists in selection of the project team, and establishes a base for project scheduling and control.

A WBS is a graphical display of the project that shows the division of work in a multilevel system. Its
development is a continuing process that usually starts when the project is first assigned to the designer and
continues until all work packages have been defined. The designer starts the process of developing the WBS
by identifying major areas of the project. As members of his project team define the work to be performed in
more detail, the WBS is adjusted accordingly. Thus, the WBS is used from the start to the finish of the project
for planning and controlling. It is an effective means of defining the whole project by parts, and providing
effective communication channels for exchange of information that is necessary for management of the
project by the contractor.

WBS is also the foundation of a project management system. Code numbers can be used to relate the
WBS to the Organizational Breakdown Structure (OBS) for management of people. Code numbers can also
be used to relate the WBS to the Cost Breakdown Structure (CBS) for management of costs. Similarly, code
numbers can relate the WBS to the Critical Path Method (CPM) schedule to manage time. Thus, the WBS
provides a systematic approach for identifying work, compiling the budget and developing an integrated
schedule. Since the WBS is developed jointly by the project team, the people that will actually perform the
work, it is an effective tool for relating work activities to ensure that all work is included and that work is not
duplicated. Most importantly, it provides a basis for measurement of performance.
 4

Format of the Work Breakdown Structure

There are two popular formats for the Work Breakdown Structure. The Standard Work Breakdown
Structure looks similar to an organization chart and may even be thought of as such, except that the boxes
represent work activities rather than reporting structures as shown below.

PROJECT

TASK 1 TASK 2 TASK 3

Figure 1. Standard Work Breakdown Structure

The second WBS format is Line-Indented as shown in figure 2. It is a straightforward listing of

project activities, with each new indentation being a lower of detail (smaller unit of work to be performed).
This is a convenient format to use, in that it can be produced entirely in text format on a computer, complete
with line numbering. However, it does not visually show the scope of the project.

Write Project Management Book

6. Develop Proposal
1.1 Survey competition
1.2 Estimate market potential
1.3 Identify publishers
7. Do Research
2.1 Review literature
2.2 Interview experts
2.3 Interview project managers
8. Write Text
3.1 Develop first draft
3.2 Revise
3.3 Submit to publisher
3.4 Approve edited copy
9. Develop Illustrations
4.1 Roughs
4.2 Final drafts
4.3 Camera-ready copy
10. Index
5.1 Make word list
5.2 Master document
5.3 Generate
 5

Figure 2. Line-Indented Work Breakdown Structure

Typical WBS Level Names

A typical work breakdown structure has six levels, named as shown in figure 3. It is
perfectly acceptable to use more than six levels, but it is almost impossible to devise names for the
lower ones. After the sixth level, most people just use the word "task" or "activity" to designate the
work. The main reason for using names is for communication purposes. If everyone uses common
terminology, then you can inquire about a work package, and everyone will know that you are
referring to level 5 of the structure.

1. Program

2. Project

3. Task

4. Subtask

5. Work Package

6. Level of Effort or Activity

Figure 3. WBS Level Names

___________________________________________________________________Prepared by: DBPulma

 6

General Aspects of WBS

Following are some general aspects of the WBS that must be kept in mind:
Up to 20 levels can be used. More than 20 is considered overkill. For smaller projects, four to six
levels will generally be adequate.
All paths on a WBS do not have to go down to the same level. That is, you don't have to force the
structure to be symmetrical. On any given branch, when you arrive at a level that will produce an
estimate of the required accuracy, you stop.
The WBS does not show sequencing of work except in the sense that all level 5 work packages
hanging below a given subtask must be complete for the subtask to be complete, and so on.
However, work packages below that subtask might be performed in series or parallel. Sequencing
is determined when schedules are developed.
A WBS should be developed before tasks are scheduled and resources allocated. The objective is
to identify all the work to be done first, then think about who will do it, how long it will take, and
how much it will cost.
The WBS should be developed by individuals knowledgeable about the work. This rule applies to
projects that involve a lot of disciplines.

PARKINSON’S LAW: “LAW OF DELAY”

“WORK EXPANDS TO FILL THE TIME

AVAILABLE FOR IT”

MURPHY’S LAW:

“IF ANYTHING CAN GO WRONG, IT WILL

What I Hear, I Forgot
GO WRONG”
What I See, I Remember

What I do, I Understand ...

Confucius
ILLUSTRATIVE WORK BREAKDOWN STRUCTURE (WBS)

Project

Site Work On Site Utilities Buildings Level I

Major Facilities

Warehous
Grading & Paving Office Maintenance e Level II
Drainage Surfaces Bldg. Bldg. Bldg. Sub Facilities

Drives Parking Architectural Structural Mechanical Electrical Level III

Work Item

Level IV
Foundation Shell Tasks

Work Work Work

Package Package Package Level V
Work Package

Legend:

- denotes continued breakdown

THE DIFFERENT NETWORK NOTATION SYSTEMS

Several network systems have emerged during the second half of the twentieth century, but these all fit
within one or other of two principal groups, determined by the method of notation:
7. The Activity-On-Arrow (AOA) System (often simply called arrow networks). The names used within
this group include:
ADM (Arrow Diagram Method), CPM (Critical Path Method) or CPA (Critical Path Analysis).
All of these are practically synonymous.
PERT (Program Evaluation Review Technique)
8. The Activity-On-Node (AON) networks. These include
PDM (Precedence Diagram Method), which are by far the most common
The Roy Method (named after its Inventor), otherwise known as the method of potentials (MOM
or MPM). This is an early activity-on-node system, very similar to precedence notation, now
rarely used.

CRITICAL PATH METHOD (CPM)

CPM was developed by J. E. Kelly of Remington Rand and M. R. Walker of Du Pont to help schedule
maintenance in chemical plants. It is a systematic approach of planning, analyzing and controlling projects.
It offers additional information’s for project control and other purposes which are not provided by other
project scheduling.
The fundamental departure of CPM from PERT is that CPM brings the concept of cost more
prominently into the planning and control process. Under the CPM system, two time and cost estimates are
indicated for each activity in the network; these two are normal estimate and crash estimate. The normal
estimate of time approximates the most likely time estimate in PERT. Normal cost is that associated with
finishing the project in the normal time. The crash time estimate is the time that would be required if no costs
were spared in reducing the project time. Crash cost is the cost associated with doing the job on a crash basis
so as to minimize completion time.

PROGRAM EVALUATION REVIEW TECHNIQUE (PERT)

PERT was developed by the Navy Special Projects Office in cooperation with Booz, Allen and
Hamilton, a management consulting firm. It was specifically directed at planning and controlling the Polaris
Missile Program, a massive project which had 250 prime contractors and over 9,000 subcontractors. This is
actually a management tool that is suited for research and development projects which are generally non-
repetitious in nature and are therefore sometimes called “once-through” projects. Duration time for activities
in research and development projects are subject to uncertainty. PERT handles the uncertainty problem by
the use of three time estimates, the optimistic time estimate, the most likely time estimate and the pessimistic
time estimate.
b) Optimistic Time Estimate, a - is the estimated minimum time an activity will take place. This
is the expected activity duration when all the breaks are right. A rule of thumb is that there
should be only one chance in ten of completing the activity in less than the optimistic time
estimate.
c) Most Likely Time, m - is the estimated normal length of time an activity takes. This is the
time, it is believed, that will most frequently be required for an activity, if it were done again
and again under identical conditions.
d) Pessimistic Time, b - is the estimated maximum time an activity would take, barring a
catastrophe. This is the expected activity duration when there is an abnormal run of bad breaks.
a+4m+b
Expected time, t
6
Advantages of PERT/CPM
7. Illustrating task relationships. By providing a graphic representation of how the performance of each
task is dependent on others, networks offer a distinct advantage over simpler graphs such as bar charts.
8. Encouraging Effective Planning. Drawing up a network requires that the project manager plan the
project from start to finish in considerable detail.
9. Pinpointing problem areas. Bottlenecks and potential trouble spots are discovered early enough for
preventive measures or corrective action to be taken.
10. Improving Communications. The network diagram provides a common frame of reference for all
parties involved in a project, such as designers, managers, contractors and other employees.
11. Comparing Alternative Actions. Managers are provided with an opportunity to compare the impact
on time and cost of different methods for reaching the project goal.
12. Allowing Concentration on Key Jobs. By identifying critical tasks, PERT/CPM allow managers to
apply their attention where it is most needed. At the same time, the network will indicate when other
tasks are falling behind schedule. This will allow managers to take immediate action.
13. Creating Flexibility. In a complex project, the critical path may change a number of times, as time
estimates prove inaccurate. PERT/CPM provide managers with the ability to identify the current critical
path on a continuing basis.

BASIC ELEMENTS and TERMS OF A NETWORK DIAGRAM

6. ACTIVITY - an activity is the effort, work or operation required to complete a task or a project, or in
some cases, a segment of that task. It is the actual work between events.
7. EVENT - an event represents the completion of an activity. It denotes the completion of all preceding
activities and the beginning of one or more succeeding activities. The event is shown on the network as
a circle, an ellipse, a square or other geometrical symbols and a number written therein for identification.
8. ARROW - an arrow is drawn to represent each activity included in the network for a project, joining two
events. An arrow is designated by two numbers, one at the tail and one at the head, with the number at
the head always larger than the number at the tail.
9. NETWORK - this is an arrow diagram drawn to represent the relations of the activities and events. It is
a common practice to start time and the first arrow or arrows at the left end of the network and to proceed
to the right.
10. DUMMY - a dummy is an artificial activity, represented on the arrow diagram by a dotted line, which
indicates that an activity following the dummy cannot be started until the activity or activities preceding
the dummy are completed. A dummy activity does not consume time.
11. DURATION - this is the estimated time it takes an activity to be finished
12. EARLIEST START ( ES ) - this is the earliest time that an activity can be started.
13. EARLIEST FINISH ( EF ) - this is the earliest time that an activity can be finished. It is the earliest
starting time plus the duration of an activity. EF = ES + D
14. LATEST START ( LS ) - this is the latest time that an activity may be started without delaying the
completion of a project. LS = LF - D
15. LATEST FINISH ( LF ) - this is the latest time that an activity can be finished without delaying the
completion of the project.
16. TOTAL FLOAT ( TF ) - this is the amount of time that the start or finish of an activity can be delayed
without delaying the completion of a project. TF = LF - EF or TF = LS - ES
17. FREE FLOAT ( FF ) - this is the amount of time that the finish of an activity can be delayed without
delaying the earliest starting time for a following activity; FF = ES ( following activity ) - EF ( of this
activity ).
18. CRITICAL PATH - is the longest path in the network of activities representing a project. The critical
path is the series of interconnected activities through the network for which each activity has zero float
time, the critical path determines the minimum time required to complete a project.
19. CRITICAL ACTIVITY - these are the activities along the critical path, any delay in their completion
would result in a delay of a project completion.
CRITICAL PATH SCHEDULING
For preparing critical path method of scheduling for any construction project, it is suggested that the
following steps be used:
h) Prepare a list of all the activities of the project.
i) Estimate the duration of each activity.
j) Determine which activity or activities immediately precede each activity.
k) Determine which activity or activities immediately follow each activity.
l) Draw a network with the activities and events properly interconnected.
m) Assign numbers to the events, being sure that the number at the head of each arrow is larger
than the number at the tail of the arrow.
n) Prepare a chart with vertical columns and horizontal lines on which to list each activity with
an appropriate designation, duration, earliest start, earliest finish, latest start, latest finish and
total float. A column for free float may be included, if this information is desired.
o) Determine which activities lie on the critical path.

SAMPLE PROBLEM :
Given:
ACTIVITIES THAT IMMEDIATELY
ACTIVITY DURATION
PRECEDE FOLLOW

A 2 None D
B 4 None F, G, H
C 1 None E
D 3 A I
E 2 C J
F 5 B I
G 2 B J
H 1 B None
I 4 D, F None
J 3 E, G None

Required:
1. Draw the network diagram for the above project.
2. Prepare a chart indicating the activities, events, D, ES, EF, LS, LF, TF, and FF.

Solution:

D 5
a)
2 3
I
4
A F
2 4 5
B H
1
4 34 1 7
G
C 2
J
1
E 3
4 6
2

_
 13

i) The Forward Pass: Beginning at the start of the network, earliest event times are calculated using the
equation:
Dj = Max (Di + Cij) where:Dj = is the earliest event time at the head event
Dj = is the earliest event time at the tail event
Cij = is the time of moving from event i to j.
This is done for all events. Di for the starting event is 0.

9
2 5
D
2 3
I
4
A F
0 2 5
B 4 H 13
1
3 7
4 1
G
C 2
J
1 1 6
E 3
4 6
2

h) The Backward Pass: To start with, the last event is assigned the same value for earliest and latest times.
Then starting from the last event, the latest event times are calculated using the
equation:
Di = Min (Dj - Cji) where: Dj = is the latest event time at the head event Di
= is the latest event time at the tail event
Cij = is the time of moving from event j to i.

Two checks at this time are good for manual calculations. First, the two times at the
start event must be zero. The second is that there should be at least one route through
the network for which the earliest and latest event times are equal.

2 D 5
2 3 9 I
6 4
A F
0
2 5
B 4 H 13
1
3 7
0 4 1
4 G 13
C 2
J
1 1 6
E 3
4 6
2
8 10
g) Computation of the Critical Path
The critical path is the longest (most time consuming) path of the network diagram.

Path A-D-I = 2 + 3 + 4 = 9 wks

Path B-F-I = 4 + 5 + 4 = 13 wks (critical path or the longest path)
Path B-H = 4 + 1 = 5 wks
Path B-G-J = 4 + 2 + 3 = 9 wks
Path C-E-J = 1 + 2 + 3 = 6 wks
9

2 D 5
2 3 Critical path = B-F-I
9 I
6 4
A F
0
2 5
B 4 H 13
1
3 7
0 4 1
4 G 13
C 2
J
1 1 6
E 3
4 6
2
8 10

h) The Table of Starts, Finishes and Floats of the Project

ACTIVITY DURATION ES EF LS LF TF FF REMARKS

A 2 0 2 4 6 4 0
B 4 0 4 0 4 0 0 critical
C 1 0 1 7 8 7 0
D 3 2 5 6 9 4 4
E 2 1 3 8 10 7 3
F 5 4 9 4 9 0 0 critical
G 2 4 6 8 10 4 0
H 1 4 5 12 13 8 8
I 4 9 13 9 13 0 0 critical
J 3 6 9 10 13 4 4
DURATION COMPRESSION

There are instances where the owner wants a project completed sooner than planned or where the
contractor must recover load time due to delays in order to catch up with schedules. For these reasons, the
project manager finds himself faced with the situation of having to expedite work. The Critical Path Method
(CPM) offers a solution for crashing work by trading time for cost.
Crashing is the process of determining shortest time, called crash time, within which an activity can be
accomplished using additional crew or equipment, overtime or extra shifts, or special techniques such as high
early strenght concrete and prefabricated components. Crashing, however, leads to increased cost arising
from, among others, the application of additional resources, increased material cost, and inefficiency of larger
crews. The cost associated with the crash time is called crash-cost.

Time-cost Trade-off
The total cost of a project is the sum of its direct and indirect costs. The direct cost, which is usually
calculated by activity, includes expense of materials, labor, equipment and subcontract. Indirect cost includes
project overhead expenses, contingency and miscellaneous expenses as well as contractor's tax. Since it is
difficult to identify which portion of the indirect cost is associated with an individual activity, it is usually
computed as a percentage of total direct cost.
For each activity, duration and cost are estimated under the assumption that resource loading are
normal. In CPM parlance, these are called the normal time and normal cost. The normal time is the activity
duration estimated during the network scheduling phase. It is based on formulated construction work
standards which are usually adjusted to reflect labor and equipment productivity, weather and actual site
conditions, crew and equipment fleet sizes, and construction methods to be employed. The normal cost is the
least direct cost necessary to accomplish the activity. It is taken from the detailed estimates of direct costs.
The minimum time to which an activity can be realistically reduced is called its crash time and the
corresponding cost is called the crash cost.
For each activity, the direct cost is related to its duration. As the pace of the activity is accelerated,
its direct cost will rise. Conversely, if it is dragged out, the cost will likewise rise. The coordinates of this
optimum point are referred to as the normal time and normal cost of the activity.
In general, a linear relationship may be assumed between indirect cost and project duration. As the
project duration is compressed, indirect cost decreases. This means that while direct cost increase as an
activity is compressed, indirect cost decreases as the project is shortened.

Crashing Procedure
In order to shorten the duration of a project, the longest path in the network, the critical path, is
compressed. It should be stressed however, that when this is crashed, it may not be necessary to crash all the
critical activities, partially or fully. Crashing should be carried out only to the desired crash duration of the
project.
When crashing the critical path, critical activities are ranked in accordance with the job-cost slope,
which is the unit change in cost for a reduction in the activity time duration. The job-cost slope can be
determined from the following formula:

Crash cost - Normal cost

Job-cost Slope =
Normal time - Crash time

Each critical activity is then crashed in the order of the job-cost slope, starting with the one having the lowest
job-cost slope, until the desired project duration is attained
The network is then examined to determine the effect of the charges on the con-critical activities.
In general, crashing the critical path reduces the float of other activities.
Thus, the shifting of the critical paths to a non-critical one is highly possible. In such cases, the
normal duration of the affected non-critical activity is compressed. Finally, the costs resulting from crashing
the critical and non-critical activities are compressed.
 24

The foregoing, procedures generally apply in projects having only one critical path. In a where the
projects has two or more critical paths, it would be necessary to identify all crashing alternatives and to
calculate the incremental costs corresponding to each alternative before the before the most sophisticated
alternative is chosen. In some cases, even if the project has only one critical path, complexities in the network
logic may require the use of the latter approach to get the least-cost solution.
In the succeeding sections, two examples problems will be discussed to illustrate the detailed
procedures for crashing the single and multiple critical path project cases.

Example 1.

Given the following data for a project, find the least cost schedule if the project has to be completed in
12 weeks.

Duration Cost Cost to Reduce

Activity Predecessors
Normal Crash Normal Crash per week
A - 6 4 10,000.00 14,000.00
B - 4 3 5,000.00 8,000.00
C A 3 2 4,000.00 5,000.00
D B 8 6 9,000.00 12,000.00
E C 7 4 7,000.00 8,000.00

Solution: (Normal Time)

Determine the project duration and critical activities using the normal time.

6 9
C
2 4
3
A 6 9 E
0 6
7 16
1
5
0 B 4 D 16

4 3 8

Compute for the Cost Slope of each activity:

14000+10000+
Cost Slope of Activity A = 2000
6 4
8000 5000
Cost Slope of Activity B = 3000
4 3

_
 25

5000 -4000
Cost Slope of Activity C =
1000
3 -2

12000 -9000
Cost Slope of Activity D =
1500
8-6

8000 -7000
Cost Slope of Activity E =
333.33
7 -4

Activity Cost to Reduce per week Order of Crashing

A 2,000 4*
B 3,000 5
C 1,000 2*
D 1,500 3
E 333.33 1*

Note: In order to arrive with the least cost schedule, we begin crashing the activities with the least
expensive activity on the critical path.

Crash Time:
6 8
C
2 4
2
A 6 8 E
0 6
4 12
1
5
0 B 4 D
12
4
8
3

Project Cost = Normal Cost + Crash Cost of Activity C &

E Project Cost = 35000 + {(1 x 1000) + (3 x 333.33)}
Project Cost = 37,000.00
 26

Example No 2.

Given the following data for a program, determine the least - cost schedule if the project is to
be completed in 15 weeks.

Duration Cost
Activity Predecessors Cost to Reduce/ week
Normal Crash Normal Crash
A - 8 6 8,000.00 10,000.00
B - 7 5 6,000.00 8,400.00
C A 5 4 7,000.00 8,500.00
D B 4 3 3,000.00 3,800.00
E A 3 2 2,000.00 2,600.00
F D, E 5 3 5,000.00 6,600.00
G C 4 3 6,000.00 7,000.00

Solution: (Normal Time)

G
C
F
6
1 A 2 E 5

B D

3
 27

B.] Crash Time

G
C

1 A 2
E 5 F 6

B D

3
Problem No. 4
The data shown below is for the construction of an important utility. Determine the least-cost schedule, if
the project must be completed in 24 weeks.

Activities w/ immediately Duration Cost Cost to Reduce

Activity
Precede Follow Normal Crash Normal Crash per week
A None B, C, D 4 3 10000 14000
B A H, I 5 3 15000 20000
C A F 2 1 5000 8000
D A E 3 2 7000 10000
E D G, I 5 4 20000 24000
F C H 6 4 25000 30000
G E J 6 5 20000 23000
H B, F K 8 4 30000 45000
I B, E L 2 1 10000 15000
J G None 9 5 25000 35000
K H None 8 6 15000 24000
L I None 5 4 20000 22000
 CHAPTER 1

PROJECT PLANNING

This chapter deals with preparing projects plans in terms of defining: work breakdown
structure, activities, logical relations, durations and activities direct cost. Terminology of
project planning will be presented and discussed. Project network representation using
different graphical methods including: activity on arrow and activity on node are presented.

1.1 Introduction

Planning is a general term that sets a clear road map that should be followed to reach a
destination. The term, therefore, has been used at different levels to mean different things.
Planning involves the breakdown of the project into definable, measurable, and identifiable
tasks/activities, and then establishes the logical interdependences among them. Generally,
planning answers three main questions:

What is to be done?
How to do it?
Who does it?

In construction, for example, plans may exist at several levels: corporate strategic plans,
pre-tender plans, pre-contract plans, short-term construction plans, and long-term
construction plans. These plans are different from each other; however, all these plans
involve four main steps:
 N. Performing breakdown of work items involved in the project into activities.
O. Identifying the proper sequence by which the activities should be executed.
P. Activities representation.
Q. Estimating the resources, time, and cost of individual activities.

Detailed planning for tendering purposes and the preparation of construction needs to be
conducted through brainstorming sessions among the planning team. The inputs and
outputs of the planning process are shown in Figure 1.1.

Contract information Activities

Drawings Relationships among activities
Specifications Method statement

OUTPUTS
INPUTS

Available resources Responsibility

PLANNING
Bills of quantities Reporting levels
Site reports Project network diagram
Organizational data Activities duration
Construction methods Activities cost

Figure 1.1: Planning inputs and outputs

Planning requires a rigorous effort by the planning team. A planner should know the
different categories of work and be familiar with the terminology and knowledge used in
general practice. Also, the planning tem should seek the opinion of experts including actual
construction experience. This helps produce a realistic plan and avoids problems later on
site.

1.2 Project Planning Steps

The following steps may be used as a guideline, or checklist to develop a project plan:
15. Define the scope of work, method statement, and sequence of work.
16. Generate the work breakdown structure (WBS) to produce a complete list of
activities.
17. Develop the organization breakdown structure (OBS) and link it with work
breakdown structure o identify responsibilities.
 10. Determine the relationship between activities.
11. Estimate activities time duration, cost expenditure, and resource requirement.
12. Develop the project network.

1.2.1 Work Breakdown Structure (WBS)

The WBS is described as a hierarchical structure which is designed to logically sub-divide

all the work-elements of the project into a graphical presentation. The full scope of work
for the project is placed at the top of the diagram, and then sub-divided smaller elements
of work at each lower level of the breakdown. At the lowest level of the WBS the elements
of work is called a work package. A list of project’s activities is developed from the work
packages.

Effective use of the WBS will outline the scope of the project and the responsibility for
each work package. There is not necessarily a right or wrong structure because what may
be an excellent fit for one discipline may be an awkward burden for another. To visualize
the WBS, consider Figure 1.2 which shows a house construction project.

House

Civil Plumping Electrical

Foundations Walls/Roof Piping H/C Water Wiring Fittings

Figure 1.2: WBS and their description

As shown in Figure 1.2, level 1 represents the full scope of work for the house. In level 2,
the project is sub-divided into its three main trades, and in level 3 each trade is sub-divided
to specific work packages. Figure 1.3 shows another example for more detailed WBS, in
which the project WBS is divided into five levels:
Level 1 Gas development project

Level 2 Recovery unit 300 Process unit 400

Level 3 Train 2 Train 1 Gas treating Separation and stabilization

Level 4 Instrumentation Structural steel Civil Piping

Piping
Level 5 fabrication

Figure 1.3: Five levels WBS

Level 1: The entire project.

Level 2: Independent areas.
Level 3: Physically identifiable sections fully contained in a level 2 area, reflect
construction strategy.
Level 4: Disciplines set up schedule.
Level 5: Master schedule activities, quantity, duration.

Example 1.1:

The WBS for a warehouse is as follow:

For more details, another two levels (third and fourth levels) can be added as shown
below:
Accordingly, a complete WBS for the warehouse project can be shown as follow (Figure
1.4):

Figure 1.4: Warehouse project WBS

WBS and organizational breakdown structure (OBS)

The WBS elements at various levels can be related to the contractor’s organizational
breakdown structure (OBS), which defines the different responsibility levels and their
appropriate reporting needs as shown in Figure 1.5. The figure, also, shows that work
packages are tied to the company unified code of accounts. The unified code of
accounts allows cataloging, sorting, and summarizing of all information. As such, the
activity of installing columns formwork of area 2, for example, which is the
responsibility of the general contractor’s formwork foreman, has a unique code that
represents all its data.

WBS coding

A project code system provides the framework for project planning and control in
which each work package in a WBS is given a unique code that is used in project
planning and control. The coding system provides a comprehensive checklist of all
items of work that can be found in a specific type of construction. Also, it provides
uniformity, transfer & comparison of information among projects. An example of
this coding system is the MasterFormat (Figure 1.6) which was developed through a
joint effort of 8 industry & professional associations including: Construction
Specifications Institute (CSI); and Construction Specifications Canada (CSC). Figure
1.7 shows an example of the coding system using a standardize system as the
MasterFormat. The Master format is divided into 16 divisions as follows:
General Requirements.
Site work.
Concrete.
Masonry.
Metals.
Woods & Plastics.
Thermal & Moisture Protection.
Doors & Windows.
Finishes.
 8 Specialties.
9 Equipment
10 Furnishings.
11 Special Construction.
12 Conveying Systems.
13 Mechanical.
14 Electrical.

Figure 1.5: WBS linked to the OBS

1.2.2 Project Activities

The building block (the smallest unit) of a WBS is the activity, which is a unique unit of
the project that has a specified duration. An activity is defined as any function or decision
in the project that: consumes time, resources, and cost. Activities are classified to three
types:

Production activities: activities that involve the use of resources such as labor,
equipment, material, or subcontractor. This type of activities can be easily
identified by reading the project’s drawings and specifications. Examples are:
excavation, formwork, reinforcement, concreting, etc. each production activity can
have a certain quantity of work, resource needs, costs, and duration.

Procurement activities: activities that specify the time for procuring materials or
equipment that are needed for a production activity. Examples are: brick
procurement, boiler manufacturing and delivery, etc.

Management activities: activities that are related to management decisions such

as approvals, vacations, etc.

An activity can be as small as “steel fixing of first floor columns” or as large as “construct
first floor columns”. This level of details depends on the purpose of preparing the project
plan. In the pre construction stages, less detailed activities can be utilized, however, in the
construction stages, detailed activities are required. Accordingly, level of details depends
on: planning stage, size of the project, complexity of the work, management expertise.
Example 1.2:

Figure 1.8 shows a double-span bridge. Break the construction works of the bridge into
activities. The plan will be used for bidding purposes.

Overlap or lag

Overlap between activities (negative lag) is defined as how much a particular activity must
be completed before a succeeding activity may start. The absence of overlap means that
the first activity must finish before the second may start. A negative overlap (lag) means a
delay is required between the two activities (Figure 1.10)

+ve overlap (-ve lag) -ve overlap (+ve lag)

Figure 1.10: Overlap among activities

Planning & Scheduling 14 Dr. Emad Elbeltagi

Example 1.5:

This case study is for a small 3 houses project. The main segments of a single house, the
responsibilities, and the logical relationship are identified as follows:

j) 11 work packages are involved: A and B (civil work, substructure), C, D, E, and F

(civil work, superstructure), G (electrical, interior), H (electrical, exterior), I
(mechanical, HVAC), J (mechanical, elevator), and K (mechanical, plumbing).
k) Substructure is supervised by Ahmed (activity A), and Ali (activity B).
l) Superstructure is supervised by Hossam (activities C and F) and Mona (activities D
and E).
m) All electrical work is supervised by George.
n) HVAC and plumbing are supervised by Adam; elevator work is supervised by
Samy.
o) Activities E and F follow activity B.
p) Activity C precedes activity G.
q) Activity I follows the completion of activity E.
r) The predecessors to activity K are activities H and I.
s) Activity D follows activity A and precedes activity H.
t) Activity J is preceded by activities F and G.

It is required to create a WBS and OBS chart.

Solution

From the available information, the relationship table, the network diagrams, and the
WBS linked to an OBS are formed as shown below (Table 1.5 and Figure 1.11).

Planning & Scheduling 15 Dr. Emad Elbeltagi

 Table 1.5: Logical relationships of Example 1.5
Activity Predecessors
Start -
A Start
B Start
C Start
D A
E B
F B
G C
H D
I E
J F, G
K H, I
Finish J, K

WBS (Work elements) Project

Civil Elec. Mech

House1 House1 House1

Supe
Sub r
OBS (Responsibility&reporting)

Ahmed A

Ali B G
Projectmanager

George

H
C
Hossam
F

D
Mona
E I
Adam
K

Samy J
Figure 1.11: WBS and OBS of Example 3.5

Planning & Scheduling 16 Dr. Emad Elbeltagi

Types of activities relationships

Four types of relationships among activities can be defined as described and illustrated
below (Figure 1.12). Typically, relationships are defined from the predecessor to the
successor activity.

i) Finish to start (FS). The successor activity can begin only when the current
activity completes.
j) Finish to finish (FF). The finish of the successor activity depends on the finish of
the current activity.
k) Start to start (SS). The start of the successor activity depends on the start of the
current activity.
l) Start to finish (SF). The successor activity cannot finish until the current
activity starts.

a b

c d

Figure 1.12: Types of

relationships 1.2.4 Drawing Project Network

A network is a graphical representation of the project activities and their relationships. A

project network is a set of arrows and nodes. Before drawing the network, it is necessary
to ensure that the project has a unified starting and ending point. The need for this start
activity arises when there is more than one activity in the project that has no predecessors
and the end activity is needed when there is more than one activity that has no successors.
Also, networks should be continuous (i.e., each activity except the first and the last has
both preceding and succeeding activities).
There are two ways that are commonly used to draw a network diagram for a project:

h) Activity on Arrow (AOA) representation.

i) Activity on Node (AON) representation

Activity on arrow network (AOA)

In this method, the arrows represent activities while the nodes represent the start and the
end of an activity (usually named as events) (Figure 1.13). The length of the arrow
connecting the nodes has no significance and may be straight, curved, or bent. When one
activity depends upon another, both appear on the diagram as two arrows having a common
node.

Activity A Activity B
i j j>i 5 10

A B
5 10 i) B depends on A

A C 3. C depends on A and B
5 10
B
5

15
B B depends on A
A C C depends on A

5 10 15

5 15
A C B depends on A and B
D depends on A and B
B 10 D
5 15

Figure 1.13: Basic patterns of AOA diagrams

The following are some rules that need to be followed when constructing an AOA
network diagram:
 5. Each activity must have a unique i – j numbers, where i (the number at the tail of
the arrow) is smaller than j (the number at the head of the arrow).
6. It is recommended to have a gap between numbers (i.e., 5, 10, 15, etc.). This will
allow for accommodation of missed activities.
7. Avoid back arrows.

In some situations, when more than one arrow leave the same node and arrive at another
node, dummy activities must be used. The dummy activity is an activity with zero duration,
consumes no resources, drawn as dashed lines, and used to adjust the network diagram. A
dummy activity is also used when one activity depends upon two preceding activities and
another activity depends only upon one of these two preceding activities as shown in Figure
1.14.

Activity on node network (AON)

This method is also called the precedence diagram method. In this method, the nodes
represent activities and the arrows represent logical relationships among the activities. If
the arrow starts from the end side of an activity (activity A) and ends at the start side of
another activity (activity B), then A is a predecessor of B (Figure 1.15). AON
representation allows the overlap or lag representation on the relationship arrows
connecting activities.

A A C
5 15 20 5 20 25
C depends on A and B
B Dummy
D depends on B only
25 B D
10 10 15 30

A A
5 15 5 15

B
B Dummy

10

Incorrect representation Correct representation

Figure 1.14: Use of dummy activity

 10 Activity number 20
B
A Activity name

10 20
B depends on A
A B

10 30 40 C depends on A and
A C D B D depends on C

20
B
30
C
10 20 B depends on A
A B C depends on B
D depends on B
40
D

Figure 1.15: Basic patterns of AON diagrams

Comparison between AOA and AON

While both networks can be used to represent a project network, there are some
differences between them:
k) There is no need for the use of dummy activities in AON representation.
l) AON are more easily to draw and to read.
m) In AOA, an activity can only start when all its predecessors have finished.
n) AON allows for overlap/lag representation.
o) AON allows for the representation of the four types of relationships while AOA
allows only for the finish to start relationship.

Example 1.6:

Construct an AOA and AON networks for the activities listed in Table 1.6.
 Table 1.6: Data for Example 1.6
Activity Predecessors
A -
B -
C A, B
D C
E C
F D
G D, E

Forming an AOA network for this set of activities might begin be drawing activities A, B
and C as shown in Figure 1.16 (a). At this point, we note that two activities (A and B) lie
between the same two event nodes; for clarity, we insert a dummy activity X and continue
to place other activities as in Figure 1.16 (b). Placing activity G in the figure presents a
problem, however, since we wish both activity D and activity E to be predecessors.
Inserting an additional dummy activity Y along with activity G completes the activity
network, as shown in Figure 1.16 (c).

Figure 1.16: AOA Network for Example 1.6

To understand the drawing of the AON, some ordering for the activities may be necessary.
This is done by placing the activities in a sequence step order. A sequence step may be
defined as the earliest logical position in the network that an activity can occupy while
maintaining the logical relationships. In this example, as there are two activities (activities
A and B) has no predecessor, then a start activity is added to have one unified start activity
(Start) for the project. Also, a finish activity (Finish) is added as there are two activities
without successors (activities F and G).

Considering the data given in Table 1.6, sequence step 1 is assigned to the Start activity.
Then, we take all activities on the list one by one and look at their immediate predecessors
and then assign a sequence step that equals the highest sequence step of all immediate
predecessors plus one as given in Table 1.7. After all sequence step numbers have been
assigned, the AON diagram can be drawn.

Table 1.7: Determining the sequence steps

Activity Predecessors Sequence step (SS)

Start - SS(Start)=1
A Start 2=SS(Start)+1
B Start 2=SS(Start)+1
C A, B 3=Highest of [SS(B), SS(A)]
D C 4=SS(C)+1
E C 4=SS(C)+1
F D 5=SS(D)+1
G D, E 5=Highest of [SS(D), SS(E)]
Finish F, G 6= Highest of [SS(F), SS(G)]

AON representation is shown in Figure 1.17, including project start and finish nodes. Note
that dummy activities are not required for expressing precedence relationships in activity-
on-node networks.
 Sequence step 1 2 3 4 5 6

Figure 1.17: An AON Network

Example 1.7

Draw the AOA and AON networks for the project given in Example 3.5.

Solution

The AOA is given in Figure 1.18 and the AON is given in Figure 1.19 as shown below.

D
10 25
A H

B E I K
5 15 30 40 45

F
C J

G
20 35

Figure 1.18: AOA network

 A D H K

Start B E I Finish

F
J

C G

Figure 1.19: AON network

1.3 Estimating Activity Duration and Direct Cost

Having defined the work activities, each activity has associated time duration. These
durations are used in preparing a schedule. For example, suppose that the durations shown
in Table 1.8 were estimated for a project. The entire set of activities would then require at
least 3 days, since the activities follow one another directly and require a total of 1.0 + 0.5
+ 0.5 + 1.0 = 3 days.

Table 1.8: Durations and predecessors for a four-activity project

Activity Predecessor Duration (Days)

Excavate trench --- 1.0
Place formwork Excavate trench 0.5
Place reinforcing Place formwork 0.5
Pour concrete Place reinforcing 1.0

All scheduling procedures rely upon estimates of the durations of the various project
activities as well as the definitions of the predecessor relationships among activities. A
straightforward approach to the estimation of activity durations is to keep historical records
of particular activities and rely on the average durations from this experience in making
new duration estimates. Since the scope of activities is unlikely to be identical
between different projects, unit productivity rates are typically employed for this purpose.
The duration of an activity may be estimated as:

Activity duration = quantity of work / number of crews x resource output

Typically, the quantity of work is determined from engineering drawings of a specific

project. The number of crews working is decided by the planner. In many cases, the number
or amount of resources applied to particular activities may be modified in light of the
resulting project plan and schedule. Some estimate of the expected work productivity must
be provided. Historical records in a firm can also provide data for estimation of
productivities.

Having defined an activity duration, it means that the planner have already defined the
number of resources that will be employed in a particular activity. Knowing activity
duration and resources employed, it is simple to estimate the activity direct cost. Then, the
three elements of an activity: duration, cost, and resources form what is called construction
method. Some activities can be performed using different construction methods. Where,
its method will have its own resources, cost and duration.

Example 1.8:

If the daily production rate for a crew that works in an activity is 175 units/day and the
total crew cost per day is LE 1800. The material needed for daily work is 4.5 units at LE
100/unit.

a. Calculate the time and cost it takes the crew to finish 1400 units
b. Calculate the total unit cost. Consider an eight hour work day.

Solution

Duration (units of time) = Quantity / Production per unit of time x number of crews
= 1400 / 175 x 1 = 8 days
Cost (labor cost) = Duration (units of time) x crew cost per unit of time
 = 8 days x LE 1800 / day = LE 14400
Total direct cost = Le 14400 + 4.5 units of material x LE 100 / day x 8 days
= LE 18000
b. Unit cost = total cost / quantity
= LE 18000 / 1400 = LE 12.86 / unit

Sometimes the productivity of a specific crew expressed in man-hours/unit not units/day.

For example, if the productivity is said to be 0.5 Man-hour/cubic meters, this means how
long it will take one labor to construct one unit. This way applied to any crew formation
and work hours.

Example 1.9:

What is the duration in days to install 6000 square feet of walls shuttering if:

a. Crew of 2 carpenters is used with output of 200 square feet/day

b. Productivity is measured as 0.008 man-hour/square feet. Number of
carpenters =3, and number of working hours/day = 8 hours

Solution

a. Duration = 6000 / 200 = 3 days

b. Total man-hours needed = 6000 x 0.008 = 48 man-hours (if one man
used) Duration = 48 / 8 = 6 days (if one man used)
Duration using 3 men = 6 / 3 = 2 days

Example 1.10: (use of several resources)

The construction of a reinforced concrete wall involves placing 660 m3 concrete, fixing 50
ton of steel, and 790 m2 of formwork. The following information belongs to the jobs
involved in this activity:
- A 6 man concrete crew can place 16 m3 of concrete/day.
- A steel-fixer and assistant can fix 0.5 ton of reinforcement/day.
- A carpenter and assistant can fix and remove 16 m2 of shuttering/day.
Calculate the duration of the activity considering the steel-fixer as the critical resource.

Solution

- using one steel-fixer: duration = 50 / 0.5 = 100 days

- using one carpenter: duration = 790 / 16 = 49.4 days
- using one concreting crew: duration = 660 / 16 = 41.25 days.

Then, for a balanced mix of resources, use 2 steel-fixer crews, one carpenter crew,
and cone concreting crew. Accordingly, the activity duration = 50 / 0.5 x 2 = 50 days.

1.4 Exercises

1. Select the right answer:

I. The elements of construction project planning are:
a. Time b. Resources
c. Cost d. All
II. Which of the following is not a typical activity category?
a. Production b. Procurement
c. Administrative d. None of the above

2. In developing the WBS for a project, level of details depends on: …..,……,……..

3. List four main differences between AOA and AON networks.

4. A small single-story commercial building is to be constructed on the site of an

existing old structure. The exterior and interior walls are of concrete blocks. The
roof is erected from steel members covered with rigid insulation and build-up
roofing. The ceiling is of suspended tile. The floor is a concrete slab on grade with
an asphalt tile finish. Interior finish on all walls is paint. The project has been
broken down into 18 steps with construction time estimate has been made for each
step. These steps are not given in any particular order. Specify the predecessors of
each activity.
 - Under ground services (water and sewage services), 1 day.
- Exterior walls, 6 days. - Foundations, 3 days.
- Demolition, 2 days. - Roof steel, 2 days.
- Interior walls, 3 days. - Roof finishing, 2 days.
- Floor slab, 3 days. - Floor finishing, 2 days.
- Rough plumbing, 3 days. - Finish plumbing, 4 days.
- Rough electrical, 3 days. - Finish electrical, 3 days.
- Rough carpentry, 2 days. - Finish carpentry, 4 days.
- Ceiling, 3 days. - Windows, 1day.
- Painting, 1day.

5. Prepare a complete plan for the project described below. This project calls for the
contractor to construct a temporary two-span, Bypass Bridge for use while a
permanent bridge is being replaced. The following figure contains a sketch of the
project.
Heavy planks will be spiked to the shore side of these piles to act as a retaining wall.
A heavy timber will be placed on top of the row of piles as an abutment cap. The pier will be
constructed by driving two rows of timber piles. Heavy timbers will be fastened on top of these
piles to serve as the pier cap. The superstructure will consist of steel beams supported by the
abutment and pier caps. Timber decking will be secured to the steel beams to serve as the
roadway. Miscellaneous bracing, curbs, and guard rails will be installed to complete the bridge.
It will be necessary to construct an asphalt concrete access road at both ends of the temporary
bridge and to demolish that access road once the bypass bridge is removed. The scope of this
project does not include removal of the bypass bridge or its access roads.
Planned Work Sequence: Only one pile-driving rig is available. It is not possible to
drive this rig across the existing bridge, and it is not feasible to detour around the
bridge; therefore, all piles must be driven from one side of the stream. All other
equipment needed for construction can cross over the existing bridge. Work will
start with the construction of the access road to the east bank pier. This access road
will not be paved until pile driving is completed. Next, the piles will be driven for
the east bank abutment, and the east bank abutment will be completed. Then, the
midstream piles will be driven from the east bank. When the east bank abutment is
completed and when the caps have been installed on the midstream pier, the steel
beams will be placed for the east span. After the east span decking is installed, the
 pile driver can be moved onto the east span and the west bank piles can be driven.
Equipment other than the pile driver can be driven across the existing bridge to the
west bank; therefore, construction of the west bank access road can be started as
soon as the equipment is released from the same task on the east bank.

Task Definition: The tasks shown in the following table have been defined. Task
durations were estimated on the basis of an eight-hour workday.
 Description Estimated Duration
Task No.
(days)
1 Survey and layout 1
2 Rough-grade access road on east bank 2
3 Drive timber piles for east abutment 1
4 Construct east abutment 5
5 Drive timber piles for midstream pier 2
6 Complete midstream pier 5
7 Place steel girders east span 2
8 Place timber decking east span 2
9 Drive timber piles west abutment 1
10 Construct west abutment 5
11 Place steel girders west span 2
12 Place timber decking west span 2
13 Rough-grade access road on west bank 2
14 Finish grading access road east bank 1
15 Finish grading access road west bank 1
16 Pave access roads both banks 3
17 Install curbs and gutters on bridge 5
18 Stripe access road 1
19 Erect barricades to site of permanent bridge 1

6. Draw a PDM network for a project with the following activities. Show all steps
including removing redundant relations; and sequence steps.

- Activity B depends on A;
- Activity G follows E, F & D;
- Activity E depends on B and A;
- Activity F can start when D & B are completed;
- Activity C is followed by F and follows A;
- Activity D is dependent upon A and B.

Planning & Scheduling 30 Dr. Emad Elbeltagi

 7. Consider the following set of activities:

Code Description
A Layout foundation
B Excavation
C Obtain concrete materials
D Place concrete
E Obtain steel reinforcement
F1 Cut and bend reinforcement (part 1)
F2 Cut and bend reinforcement (part 2)
G1 Place reinforcement (part 1)
G2 Place reinforcement (part 2)
H Obtain formwork
IErect formwork
JRemove formwork
K Clean up

A gang of steelfixers is used to cut and bend reinforcement and another gang is
used for placing reinforcement. The first part of reinforcement can be placed during
formwork erection while the second part should wait for completion of formwork
erection. Tabulate the predecessors of each activity and draw AON network.

8. For the network below, prepare a table showing a list of immediate predecessors
and immediate successors for each of the activities. Use the i - j node notation for
activities.

5 6

1 3 4 7

Planning & Scheduling 31 Dr. Emad Elbeltagi

9. The construction of RC wall involves placing 660 m3 concrete, 50 t of steel, and
790 m2 of formwork. Calculate the duration of the activity using a balanced mix of
the resources if:

- A 6 man concrete gang can place 16 m3 of concrete / day.

- One steelfixer and one assistant can fix 0.5 t of steel / day.
- One carpenter and one assistant can fix and strike 16 m2 / day.

10. Estimate the labor cost for the formwork of a continuous wall footing that has a
quantity of 500 SF. The activity is constructed by crew that has a daily output of
485 SF/day, and consists of: 3 carpenters at rate LE 21.60/hr & 1 building labor at
rate LE 17.15/hr.

11. A construction project has the following activities along with their relationships.
Develop an Activity on Arrow (AOA) network.

I. A is the first activity.

II. B, C and D follow A and can be done concurrently.
III. E and G cannot begin until C is completed, and can be done
concurrently.
IV. F is the immediate successor to activities B and E.
V. H and K run in parallel, and both succeed G.
VI. L succeeds F and H.
VII. J and I are immediate successor activities to D.
VIII. M and N are immediate successor to K and I. However, both M
and N can be performed concurrently.
IX. Q is the last activity and follows O & P. O is the immediate
successor to N and L. Activity P is the immediate successor to M
and J.
ASSIGNMENTS