• Home
• Module overview
• 1. Introduction to planning
  • 1.1 Types of plans
    • 1.1.1 Some definitions
    • 1.1.2 Domains of planning
    • 1.1.3 Users and levels of planning
  • 1.2 Completing a planning cycle
    • 1.2.1 A planning process
    • 1.2.2 Tactical and operational planning
    • 1.2.3 A participative planning process
    • 1.2.4 When to complete business planning
  • 1.3 Implementing an operational plan
    • 1.3.1 Define the plan's purpose
    • 1.3.2 Setting the planning period and scope
    • 1.3.3 Why plans fail - The strategic level
    • 1.3.4 Why plans fail - The operational or project level
  • 1.4 SMART goals
    • 1.4.1 S.M.A.R.T. Goal statements
  • 1.5 Contingency plans
    • 1.5.1 Why contingency plan?
    • 1.5.2 Contingency plans and risk
    • 1.5.3 Contingency planning actions

• 2. Plan and manage resources

  • 2.1 Plan and manage human resources
    • 2.1.1 Recruitment
    • 2.1.2 Selection
    • 2.1.3 Induction
  • 2.2 Enterprise Resource Planning (ERP)
  • 2.3 Purchasing resources
    • 2.3.1 Tangible and intangible assets
    • 2.3.2 Acquisition costs
    • 2.3.3 Depreciation costs
    • 2.3.4 Planning resource acquisition and utilisation
    • 2.3.5 Estimating resource needs
  • 2.4 Manage Capacity
    • 2.4.1. Planning capacity
    • 2.4.2. Measuring capacity
    • 2.4.3. Matching operations plans with capacity
    • 2.4.4. Capacity analysis and economies of scale
    • 2.4.5. Capacity and performance effectiveness
    • 2.4.6. Determinants of capacity
  • 2.5 Aggregate and Master Planning
    • 2.5.1 Master Schedule
    • 2.5.2 Operational control and resource planning
    • 2.5.3 Demand and scheduling control

• 3. Risk Management

  • 3.1 Risk Management
    • 3.1.1 Potential benefits from an effective risk management
    • 3.1.2 Classifying risk
    • 3.1.3 Risk and ANZS4360:2004
    • 3.1.4 Risk analysis
  • 3.2 Estimate the risk attached to a corrective action
    • 3.2.1 Risk analysis categories
    • 3.2.2 Prioritising risks

• 4. Planning projects

  • 4.1 Planning the project
    • 4.1.1 Setting the project plan
    • 4.1.2 Setting achievable outcomes
  • 4.2 Controlling Projects
    • 4.2.1 Personnel resources
    • 4.2.2 Managing project costs
    • 4.2.3 Value of managing project costs
    • 4.2.4 Estimates
    • 4.2.5 Cost Coding
    • 4.2.6 The time factor
  • 4.3 Scheduling project tasks and activities
    • 4.3.1 Project timelines and deliverables
    • 4.3.2 Critical Path Analysis (CPA)
    • 4.3.3 PERT
    • 4.3.4 Seven steps to project scheduling
    • 4.3.5 Completing project schedule activities

• 5. Problem solving and decision making

  • 5.1 Problem solving
    • 5.1.1 The problem solving process
    • 5.1.2 Solutions search
    • 5.1.3 Removing root causes
    • 5.1.4 Solutions implementation through inclusive communication processes
  • 5.2 Decision making
    • 5.2.1 Decision making model and leadership styles
  • 5.3 Decision making approaches
    • 5.3.1 The logical systems
    • 5.3.2 Contingency approach
    • 5.3.3 Quantitative - schematic and mathematical approaches
    • 5.3.4 Critical Path Analysis
    • 5.3.5 PERT
    • 5.3.6 Group quantitative approaches
    • 5.3.7 A qualitative approach
  • 5.4 Context and the influence on the decision processes
    • 5.4.1 Factors in decision making
    • 5.4.2 Rational decision making
    • 5.4.3 Creative decision making
  • 5.5 Scenarios for team decision making and problem solving
    • Problem scenario number 1 - Lost in the bush
    • Problem scenario number 2 - Toothpaste blues
    • Analysis of personal behaviour in groups

4.2.5 Cost Coding

A code is a shorthand method for conveying essential data about an item and:

• A code must act as a unique name that identifies the component to which it refers.
• The identifying code (plus sub-codes) can also categorise, qualify and/or specify other factors of the component that help control the project process.

Reading 2

Larson, E & Larson R (August 2004) 'How to Create a Clear Project Plan', Darwin Magazine , 3 pages. Sourced October 2004, at http://www.darwinmag.com/read/080104/project.html

Hints
Code Systems might include:

Project Identification - A Project Number is allocated (e.g. 110-000) which identifies the project for all accounting a management purposes

Item Identification - A concise verbal description that distinguishes either a component part (eg. Tender Form 110-000) or a component sub-phase (eg. Phase 3 Check 110-000)

Operation Identification - A variable number that identifies the person or phase or whatever allocated a part of the project (eg., Sub-Form 110-200 tells us that Project 110 is using a Sub-Form at the Second Phase, if that is what we make the coding mean)

Relationship - A variable number that identifies where or at what phase the component is (eg. Sub-form 110-223 tells us that Project 110 is using a Sub-Form at the second phase of the 23 day, if that is what we make the coding mean)

Family/ Batch Identification - A variable number that identifies a particular grouping (e.g., 110 - 2A00 tells us that Project 110 Part A is currently being worked on, if that is what we make the coding mean. Perhaps a Part B is being worked on simultaneously).

When people are asked to estimate how long (and therefore the associated cost of the hourly rate) a project component will take, they are inclined to be more optimistic or pessimistic than realistic. "I can polish off that little job in three days!" it is claimed but three weeks later all that is produced are excuses. "That's a tall order and will probably take three weeks!" is another common response but three days later the completed work lands on the manager's desk. This makes the Project Manager's role difficult. One way to avoid this is to break projects into blocks of effort and allocate cost blocks that match effort, resources or time.

Previous Page - Next Page