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Project Management: A Project Management: A Managerial ApproachManagerial Approach

Chapter 5 – Project PlanningChapter 5 – Project Planning

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OverviewOverview

• Initial CoordinationInitial Coordination

• Planning ElementsPlanning Elements

• Preliminary ToolsPreliminary Tools

• Coordination via IntegrationCoordination via Integration

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Project PlanningProject Planning

• There are several reasons to use There are several reasons to use considerable care when planning considerable care when planning projects:projects:– The primary purpose of planning is to The primary purpose of planning is to

establish a set of directions in enough detail establish a set of directions in enough detail to tell the project team exactly what must to tell the project team exactly what must be donebe done

– The purpose of planning is to facilitate later The purpose of planning is to facilitate later accomplishmentaccomplishment

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Initial Project CoordinationInitial Project Coordination

• It is crucial that the project’s objectives It is crucial that the project’s objectives be clearly tied to the overall mission of be clearly tied to the overall mission of the firmthe firm– A project launch meeting is an initial A project launch meeting is an initial

coordinating meeting that serves as a visible coordinating meeting that serves as a visible symbol of top management’s commitment symbol of top management’s commitment to the projectto the project

– The project launch meeting’s success is The project launch meeting’s success is absolutely dependent on the existence of a absolutely dependent on the existence of a well-defined set of objectiveswell-defined set of objectives

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Project Launch MeetingProject Launch Meeting

• Should not allow plans, schedules, and Should not allow plans, schedules, and budgets to go beyond the most aggregated budgets to go beyond the most aggregated level at the launch meetinglevel at the launch meeting

• The outcomes should be:The outcomes should be:– 1. Technical Scope is established1. Technical Scope is established– 2. Basic areas of performance responsibility 2. Basic areas of performance responsibility

are accepted by the participantsare accepted by the participants– 3. Some tentative overall schedules and 3. Some tentative overall schedules and

budgets are spelled outbudgets are spelled out

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Composite PlanComposite Plan

• Each individual/unit accepting responsibility for a Each individual/unit accepting responsibility for a portion of the project should agree to deliver a portion of the project should agree to deliver a preliminary plan about how that responsibility will be preliminary plan about how that responsibility will be accomplishedaccomplished

• These plans should contain descriptions of the These plans should contain descriptions of the required tasks, and estimates of the budgets and required tasks, and estimates of the budgets and schedulesschedules

• These plans are then scrutinized by the group and These plans are then scrutinized by the group and combined into a composite project plancombined into a composite project plan

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Composite PlanComposite Plan

• The composite plan, still not completely firm, is The composite plan, still not completely firm, is

approved by each participating group, by the approved by each participating group, by the

project manager, and then by senior project manager, and then by senior

organizational managementorganizational management

• Each subsequent approval hardens the plan, and Each subsequent approval hardens the plan, and

when senior management has endorsed it, any when senior management has endorsed it, any

further changes in the project’s scope must be further changes in the project’s scope must be

made by processing a formal made by processing a formal change orderchange order

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Project PlanProject Plan

• The final approved result of this procedure is the The final approved result of this procedure is the project plan, also known as a project plan, also known as a MasterMaster or or BaselineBaseline planplan

• Once planning phase is complete, it is beneficial to Once planning phase is complete, it is beneficial to hold a post-planning reviewhold a post-planning review

• The major purpose of the review is to ensure that all The major purpose of the review is to ensure that all necessary elements of a project plan have been necessary elements of a project plan have been properly developed and communicatedproperly developed and communicated

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Project Plan ElementsProject Plan Elements

• OverviewOverview– Summarized Scope, Objectives, Summarized Scope, Objectives,

StructureStructure

• ObjectivesObjectives– Time, Cost, PerformanceTime, Cost, Performance– Profit GoalsProfit Goals– Technical RequirementsTechnical Requirements

• General ApproachGeneral Approach– Technologies to UseTechnologies to Use– Managerial ProceduresManagerial Procedures

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Project Plan ElementsProject Plan Elements

• Contracting GuidelinesContracting Guidelines– Legal ConsiderationsLegal Considerations– Procedural and Relationship ConsiderationsProcedural and Relationship Considerations

• Schedule and Resources LimitationsSchedule and Resources Limitations– Early Identification of TradeoffsEarly Identification of Tradeoffs

• Monitor and ControlMonitor and Control– Establish Metrics, Measurements, & Establish Metrics, Measurements, &

OpportunitiesOpportunities

• Potential Problem AreasPotential Problem Areas– Risk Identification, Assessment, and ResponseRisk Identification, Assessment, and Response

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Project Planning in ActionProject Planning in Action

• Project plans are usually constructed by Project plans are usually constructed by listing the sequence of activities required listing the sequence of activities required to carry the project from start to to carry the project from start to completion, and developing an action completion, and developing an action plan to complete the activitiesplan to complete the activities

• This helps the planner decide the This helps the planner decide the necessary sequence of thingsnecessary sequence of things

• Sequencing is a necessary consideration Sequencing is a necessary consideration for determining the project schedule and for determining the project schedule and durationduration

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Project Planning in ActionProject Planning in Action

• Software and hardware developers Software and hardware developers commonly use a planning process commonly use a planning process oriented around the life cycle events:oriented around the life cycle events:– Concept evaluationConcept evaluation

– Requirements identificationRequirements identification

– DesignDesign

– ImplementationImplementation

– TestTest

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Project Planning Project Planning

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Project Planning Project Planning

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Project Planning Project Planning

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Project Planning in ActionProject Planning in Action

• Software and hardware development Software and hardware development planning process (cont.)planning process (cont.)– IntegrationIntegration

– ValidationValidation

– Customer test and evaluationCustomer test and evaluation

– Operations and maintenanceOperations and maintenance

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Systems IntegrationSystems Integration

• Systems IntegrationSystems Integration is one part of is one part of integration managementintegration management and plays a and plays a crucial role in the performance aspect of crucial role in the performance aspect of the projectthe project

• This includes any technical specialist in This includes any technical specialist in the science or art of the project who is the science or art of the project who is capable of integrating the technical capable of integrating the technical disciplines to achieve the customer’s disciplines to achieve the customer’s objectivesobjectives

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Systems IntegrationSystems Integration• Systems IntegrationSystems Integration is concerned with is concerned with

three major objectives:three major objectives:– PerformancePerformance - what a system does - what a system does– EffectivenessEffectiveness - achieve desired performance - achieve desired performance

in an optimal mannerin an optimal manner• Requires no component specifications unless Requires no component specifications unless

necessary to meet one or more systems necessary to meet one or more systems requirementsrequirements

• Every component requirement should be traceable Every component requirement should be traceable to one or more systems requirementsto one or more systems requirements

• Design components to optimize system Design components to optimize system performance, not the performance of subsystemsperformance, not the performance of subsystems

– Cost Systems Cost Systems - cost is a design parameter- cost is a design parameter

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Hierarchical Planning Hierarchical Planning SystemSystem• All activities required to complete a project All activities required to complete a project

must be precisely delineated, and coordinatedmust be precisely delineated, and coordinated

• Some activities must be done sequentially, Some activities must be done sequentially, and some simultaneouslyand some simultaneously

• Using a hierarchical planning system will Using a hierarchical planning system will allow these activities to be identified and allow these activities to be identified and sorted appropriatelysorted appropriately

• Also know as the “even planning process”Also know as the “even planning process”

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Sorting Out the ProjectSorting Out the Project

• The importance of careful planning can The importance of careful planning can scarcely be overemphasizedscarcely be overemphasized

• Pinto and Slevin developed a list of ten Pinto and Slevin developed a list of ten factors that should be associated with factors that should be associated with success in implementation projectssuccess in implementation projects

• The factors were split into strategic and The factors were split into strategic and tactical clusterstactical clusters

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Strategic FactorsStrategic Factors

• Project MissionProject Mission: Clear sense of : Clear sense of direction with clear initial goalsdirection with clear initial goals

• Top Management SupportTop Management Support: : Willingness and ability to provide Willingness and ability to provide resources, authority, and influenceresources, authority, and influence

• Project Schedule/PlanProject Schedule/Plan: Detailed : Detailed specification and schedule for project specification and schedule for project implementation implementation

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Tactical FactorsTactical Factors

• Client ConsultationClient Consultation: Adequate : Adequate communication, consultation, and active communication, consultation, and active listening to and with the clientlistening to and with the client

• PersonnelPersonnel: Necessary personnel selected, : Necessary personnel selected, recruited and trainedrecruited and trained

• Technical TasksTechnical Tasks: Required technologies : Required technologies and expertise availableand expertise available

• Client AcceptanceClient Acceptance: Final project sold to : Final project sold to end-usersend-users

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Tactical FactorsTactical Factors

• Monitoring and FeedbackMonitoring and Feedback: Provision : Provision of comprehensive information at of comprehensive information at each implementation stageeach implementation stage

• CommunicationCommunication: Appropriate network : Appropriate network for all necessary information to for all necessary information to circulate among all key playerscirculate among all key players

• TroubleshootingTroubleshooting: Ability to handle : Ability to handle unexpected crises and plan unexpected crises and plan deviationsdeviations

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Sorting Out the ProjectSorting Out the Project• Strategic Success Factors:Strategic Success Factors:

– Project MissionProject Mission - spell out clearly defined and - spell out clearly defined and

agreed-upon objectives in the project planagreed-upon objectives in the project plan

– Top Management SupportTop Management Support - it is necessary for - it is necessary for

top management to get behind the project at the top management to get behind the project at the

outset, and make clear to all personnel involved outset, and make clear to all personnel involved

that they support successful completionthat they support successful completion

– Project’s Action PlanProject’s Action Plan - detailed plan of the - detailed plan of the

required steps in the implementation process required steps in the implementation process

needs to be developed including all resource needs to be developed including all resource

requirementsrequirements

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The Work Breakdown StructureThe Work Breakdown Structure

• The Work Breakdown Structure (WBS) can The Work Breakdown Structure (WBS) can take a variety of forms that serve a take a variety of forms that serve a variety of purposesvariety of purposes

• The WBS often appears as an outline with The WBS often appears as an outline with Level I tasks on the left and successive Level I tasks on the left and successive levels appropriately indentedlevels appropriately indented

• The WBS may also picture a project The WBS may also picture a project subdivided into hierarchical units of tasks, subdivided into hierarchical units of tasks, subtasks, work packages, etc.subtasks, work packages, etc.

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The Work Breakdown StructureThe Work Breakdown Structure

• The WBS is an important document and can be The WBS is an important document and can be tailored for use in a number of different waystailored for use in a number of different ways– It may illustrate how each piece of the project It may illustrate how each piece of the project

contributes to the whole in terms of performance, contributes to the whole in terms of performance, responsibility, schedule, and budgetresponsibility, schedule, and budget

– It may list the vendors or subcontractors associated It may list the vendors or subcontractors associated with specific taskswith specific tasks

– It may serve as the basis for making cost estimates or It may serve as the basis for making cost estimates or estimates of task durationestimates of task duration

– It may be used to document that all parties have It may be used to document that all parties have signed off on their various commitments to the projectsigned off on their various commitments to the project

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The Work Breakdown StructureThe Work Breakdown Structure

• General steps for designing and using the WBS:General steps for designing and using the WBS:– 1. Using information from the action plan, list the task 1. Using information from the action plan, list the task

breakdown in successively finer levels of breakdown in successively finer levels of detail. Continue detail. Continue until all meaningful tasks or until all meaningful tasks or work packages have been work packages have been identified identified

– 2. For each such work package, identify the data 2. For each such work package, identify the data relevant to relevant to the WBS. List the personnel and the WBS. List the personnel and organizations organizations responsible for each task. responsible for each task.

– 3. All work package information should be reviewed 3. All work package information should be reviewed with with the individuals or organizations who have the individuals or organizations who have responsibility responsibility for doing or supporting the work in for doing or supporting the work in order to verify the order to verify the accuracy of the WBS accuracy of the WBS

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The Work Breakdown StructureThe Work Breakdown Structure• General steps for designing and using the WBS (cont):General steps for designing and using the WBS (cont):

– 4. The total project budget should consist of four elements: 4. The total project budget should consist of four elements: direct budgets from each task; an indirect cost direct budgets from each task; an indirect cost

budget budget for the project; a “contingency” reserve for for the project; a “contingency” reserve for unexpected unexpected emergencies; and any residual, which emergencies; and any residual, which includes the profit includes the profit derived from the project derived from the project

– 5. The project master schedule integrates the many 5. The project master schedule integrates the many different schedules relevant to the various parts of the different schedules relevant to the various parts of the project project

• Items 1-5 focus on the WBS as a planning tool but it Items 1-5 focus on the WBS as a planning tool but it may also be used to monitor and control the projectmay also be used to monitor and control the project

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The Work Breakdown StructureThe Work Breakdown Structure

• Items 6 and 7 focus on the WBS as an aid to Items 6 and 7 focus on the WBS as an aid to monitor and control a project:monitor and control a project:– 6. The project manager can examine actual resource 6. The project manager can examine actual resource

use, use, by work element, work package, task, up to by work element, work package, task, up to the full the full project level. The project manager can project level. The project manager can identify identify problems, harden the estimates problems, harden the estimates of final cost, and make of final cost, and make sure that relevant sure that relevant corrections have been designed and corrections have been designed and are ready are ready to implementto implement

– 7. The project schedule may be subjected to the 7. The project schedule may be subjected to the same same comparisons as the project budget. comparisons as the project budget. Actual progress is Actual progress is compared to scheduled and compared to scheduled and corrective action can be corrective action can be taken taken

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WBS Linear Responsibility WBS Linear Responsibility ChartChart

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Simplified Linear Responsibility Simplified Linear Responsibility ChartChart

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Project Planning Project Planning

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Project Planning Project Planning

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Coordination via Integration Coordination via Integration ManagementManagement

• The most difficult aspect of implementing a The most difficult aspect of implementing a project is the coordination and integration project is the coordination and integration of the various elements of the projectof the various elements of the project

• The intricate process of coordinating the The intricate process of coordinating the work and timing of all inputs is called work and timing of all inputs is called integration managementintegration management

• Interface coordination Interface coordination is used to denote is used to denote the process of managing this work across the process of managing this work across multiple groupsmultiple groups

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Approaches to Interface Approaches to Interface ManagementManagement

• Recent work on managing the Recent work on managing the interface focuses on the use of interface focuses on the use of multifunctional teams (MT)multifunctional teams (MT)– There is general agreement that MT has There is general agreement that MT has

a favorable impact on product/service a favorable impact on product/service design and deliverydesign and delivery

– Successfully involving cross-functional Successfully involving cross-functional teams in project planning requires that teams in project planning requires that some structure be imposed on the some structure be imposed on the planning processplanning process

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Approaches to Interface Approaches to Interface ManagementManagement

• A different attack on the problem is defining A different attack on the problem is defining and mapping all interdependencies between and mapping all interdependencies between the various members of the project teamthe various members of the project team– Rather than mapping interfaces on the firm’s Rather than mapping interfaces on the firm’s

organizational chart, instead it maps the organizational chart, instead it maps the interdependencies directlyinterdependencies directly

– Does not ignore the value of the WBS, action plan, or Does not ignore the value of the WBS, action plan, or PERT/CPM networks, but simply uses interface maps PERT/CPM networks, but simply uses interface maps as a source of the coordination requirement to as a source of the coordination requirement to manage the interdependenciesmanage the interdependencies

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Project Master ScheduleProject Master Schedule