Planning

Abstract

This chapter deals with project planning. It comments upon different approaches for planning normally used nowadays, such as Gantt, Critical Path Method (CPM), Program Evaluation and Review Technique (PERT), and the Monte Carlo Model (MC), and lists many other techniques, for instance, Earned Value Analysis (EV), Probabilistic Trees, Risk Matrix, etc., as well as illustrating other tools, namely Work Breakdown Structure (WBS), Risk Breakdown Structure (RBS), and Z-Matrix. Using the same problem, a comparison between CPM, PERT and MC is proposed; it starts with CPM deterministic and consequently average durations and costs (and thus, with the same chance for success and failure). It moves on to probabilistic, but static PERT (because of its unique scenario), to Monte Carlo, with its hundreds of probabilistic scenarios (subsequently yielding a more reliable outcome). This analysis involves risks related to Time (Delays), Costs (Overruns), Quality, Social impacts, Project safety, Quality, Communications, External factors, Legal, and Environment, in other words, all components of a project. Needless to say, no technique will guarantee that a project will finish on time and under budget, since that technique has not been invented yet, and probably never will be, owing to the many predictable and unpredictable uncertainties in modern projects. However, the chapter offers the most advanced technology for the time being.