Question

Part III – Short Essay (please limit your answer to 250 words)

Please describe how the following elements of project planning are combined to generate a base project plan projecting estimated project cost over time.

- Work breakdown structure

- Organizational breakdown structure

- Control accounts

- Project schedule network

- Project cost estimate

- Cost- and time-weighted schedule

Answer 1

Ans) Elements of Project Planning are :

(i) Work Breakdown Structure - A work Breakdown Structure (WBS) is a heirarchical structure which organises and divides  the project work into work packages/sub parts so that the work can be easily managed. The main purpose of Work Breakdown Structure is to simplify the complicacies of the project and reducing them to small manageable tasks with defined limits of Measurement and independencies.

(ii) Organizational Breakdown Structure - It is a value based structure to classify the personnel deployed for a project. There is a systematic and heirarchical form of Organised Management of project clearly stating who reports to whom. The below flowchart is an example of OBS

(iii) Control Accounts : Control Accounts are very useful in terms of keeping all the balances in correct manner and useful for generating Financial Statements in a clen and systematic way. Commonly , The types of Control Accounts are Creditors and Debtors Control accounts which show payments credited and due from the respective firms and keep all the records of inventory and stock transactions. All these form a part of Ledger.

(iv) Project Schedule Network : A network which defines the logical relationship and systematic Order of schedule of events or activities for the efficient completion of the Project. Critical Path Method and PERT (Program Evaluation & Review Technique) are methods of project Scheduling. It is important to find out the Critical time ( Longest time taken for completing the project) to determine the feasibilty of Cost and time.

(v)Project Cost Estimate - Projet Cost estimate is the estimation of evaluating the Quantities,rates and prices of all the resources being utilized in the project. It is not the actual estimation of the Cost rather it is the prediction of the Cost based on the scope of work.

(vi) Cost and Time Weighted Schedule - The Overall project Shchedule should comprise of Time work schedule and financial planning of the project which will help in projecting Fund requiremnts with the progress of the project and will help the project in a systematic procedure. The below figure is an example figure to show the Time weighted schedule of scheduled activities of minor Bridge works.