1 © the delos partnership 2004 project management planning the project

1 © The Delos Partnership 2004

Project ManagementProject Management

Planning the Project


Up, Down and Acrossthe Company

PlanningPlanning

At the end of this session you will have an understanding of the following:-

• The Planning Process

• The Planning Hierarchy– WBS– Plans– Schedules


Planning ProcessesPlanning Processes

6.3 6.3 Activity Activity Duration Duration

EstimatingEstimating

6.3 6.3 Activity Activity Duration Duration


5.2 5.2 Scope Scope

PlanningPlanning

5.2 5.2 Scope Scope

PlanningPlanning

5.3 5.3 Scope Scope

DefinitionDefinition

5.3 5.3 Scope Scope


6.1 6.1 Activity Activity


6.1 6.1 Activity Activity


7.17.1Resource Resource PlanningPlanning

7.17.1Resource Resource PlanningPlanning

6.26.2Activity Activity

SequencingSequencing

6.26.2Activity Activity

SequencingSequencing

7.27.2CostCost


7.27.2CostCost


6.46.4Schedule Schedule

DevelopmentDevelopment

6.46.4Schedule Schedule

DevelopmentDevelopment

7.37.3CostCost

BudgetingBudgeting

7.37.3CostCost

BudgetingBudgeting

4.14.1Project Plan Project Plan DevelopmentDevelopment

4.14.1Project Plan Project Plan DevelopmentDevelopment

N.B. All numbering refers to the PMI® Project Management Body of Knowledge (PMBOK) Knowledge Areas

4 © The Delos Partnership 200419/04/23

InputInput OutputOutputProcessProcess

Phases

Objectives

Deliverables

Acceptance Criteria

CharterProjectCharter Scope

Plan

Wave 1 Wave 2

Scope PlanningScope Planning



Decomposition

Objective

Work Breakdown Structure

Charter

ScopePlan

Charter

Scope Plan

WBS

Scope DefinitionScope Definition


Why Define the Why Define the Work Breakdown Structure?Work Breakdown Structure?

•To manage a project successfully, you must first have a clear understanding of the amount of work you are required to complete

•Only then can the cost and schedule of your project be estimated and controlled with any confidence

•The WBS identifies all the work to be performed I.e. the Scope of the Project. If it is not in the WBS it is not part of the project

•It can often be as important to say what is not within scope


GoalGoalGoalGoal

Objective 1Objective 1Objective 1Objective 1 Objective 2Objective 2Objective 2Objective 2 Objective 3Objective 3Objective 3Objective 3

Deliverable 1Deliverable 1Deliverable 1Deliverable 1 Deliverable 2Deliverable 2Deliverable 2Deliverable 2 Deliverable 3Deliverable 3Deliverable 3Deliverable 3

Defining the WBSDefining the WBS

TaskSub Tasks

Task Sub Task

TaskSub Tasks

Task Sub Task

TaskSub Tasks

Task Sub Task



Activity ListsCharter

Scope Plan

WBS

Charter

Scope Plan

WBS

Project Task List

Activity DefinitionActivity Definition


Case StudyCase Study

Breakout Session 2



Dependencies

Project Visual (Network Diagram)

Charter

Scope Plan

WBS

Charter

Scope Plan

WBS

Project Task List Project Task List

NetworkDiagram

Activity SequencingActivity Sequencing


Creating the Project VisualCreating the Project Visual(The Network Diagram)(The Network Diagram)3 Types of Dependencies

– Mandatory• No choice e.g. the walls must go up before the

roof can go on

– Discretionary• Preferred by stakeholders e.g. like the kitchen

done before the lounge

– External• Legally required e.g. planning permission before

you start


Creating the Project VisualCreating the Project Visual(The Network Diagram)(The Network Diagram)• Facilitates engaging the project team

and other stakeholders

• Sanity Check

• Helps determine the critical path

Critical Path = A:D:E:F:H:I= 2+6+2+2+2 = 16 (weeks)

A

D

B C

E

G

F

H I

2

2 6

11 2

1 1

2

2


Critical Path MethodCritical Path Method

The focus on CPM is to determine float in order to determine which tasks have the most and the least scheduling flexibility

A

D

B C

E

G

F

H I

Critical Path = A:D:E:F:H:I= 2+6+2+2+2 = 16 (weeks)

2

2 6

11 2

1 1

2

2


Critical Path MethodCritical Path Method

• What is the critical path? (no scheduling flexibility)

• Where is the float/slack? (some scheduling flexibility)

Start Finish

A=1

F=1

B=4

P=3

M=3

I=3

D=2

O=2

G=1

N=1

Dummy

C= 2

Q=3

L=6H=2


Creating the Project VisualCreating the Project Visual(The Network Diagram)(The Network Diagram)Network Diagram (AON, AOA)

– Shows interdependencies of all tasks– Used for planning the project– Used for crashing and fast tracking the

project


Network Diagrams Aid Network Diagrams Aid Planning Planning Crashing

– Adding more resources to critical path tasks while maintaining scope

• E.g. move resources from non-critical tasks which have float or adding extra resources

Fast Tracking– Doing critical path tasks in parallel that were originally

planned in series

Resource Levelling– Plans out time of tasks (and costs) in favour of a stable

number of resources used consistently in full



Breakout Session 3



Top Down (Analogous) Estimating

Expert Judgement

Monte Carlo Analysis

Heuristic (Rule of Thumb

Historical Information (Benchmarking)

PERT

a combination of the above….

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Activity Duration EstimatingActivity Duration Estimating



Estimating– Should be done by people doing the work not just by project

managers

Estimating Methods– CPM

• Has one task per estimate• Emphasis on controlling costs and leaving time line flexible• Can only be drawn on AOA• Can have dummies

– PERT• Has 3 estimates per activity

– Optimistic, pessimistic, most likely– Can be used for time and cost– Emphasis on time with flexibility on cost

© The Delos Partnership 200419/04/23

PERTPERT(Program Evaluation and Review Technique)(Program Evaluation and Review Technique)

1. Estimate for 3 separate scenarios:• Best Case (B), • Most Likely (ML) and • Worst Case (W)

2. Calculate Weighted average estimate by:

(B + 4 ML + W ) / 6


Pert Analysis - ExamplePert Analysis - Example

N.B. Standard Deviation = (Best Case + Worse Case) / 6Variance = [(Best Case + Worse Case) / 6] 2

1. Best Case estimate = 10 hours,

Most Likely estimate = 15 hours,

Worst Case estimate = 25 hours.

2. Average estimate = (10 + 4*15 + 25) / 6

= 16 hours.


PERT PERT

PERT– Estimate = (P+4M+O)/6– Standard Deviation = (P-O)/6– Variance = [(P-O)/6]2

Task

A

B

C

D

O

3

2

5

7

M

6

3

12

8

P

8

4

20

8

DurationStandardDeviation

Variance



PERT (Project Evaluation and Review Technique)

CPM (Critical Path Method)

Resource Levelling

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule

Schedule DevelopmentSchedule Development


Project ScheduleProject Schedule

Project PlansProject Plans

Activity ListActivity List

• A multi page document (not a Gantt chart)

• Down to the level that you are going to control at

• Rolling Weekly schedule of tasks (<4 weeks out)

The Planning HierarchyThe Planning HierarchyWBS


Activity ListsActivity Lists

• Designed to reduce overhead associated with maintenance of more detailed project plan on a weekly basis

• Activity List is a detailed picture of the work assignments and schedule of activities over the coming weeks ( <4 weeks)

– It specifies tasks, resource assignments and the expected start and end dates

– It is updated on a weekly basis, based on actual performance during the preceding week

– Changes in the project work plan are reflected in the activity lists and vice-versa

99

1122

33

66


What is required?...………………...

by when?…………………………….

What must be done?………………….

in what order?………………………….

and by whom?……………………….

How long will each activity (and therefore the whole project) take?...

So how do I make it fit ?…………...

Objectives and deliverables

High level estimates/external milestones

Activities

Dependencies

Resourcing

Detailed work estimates

Reconcile

Scheduling SummaryScheduling Summary


ReconcilingReconciling

• More resources• De-scope• Further breakdown - focus on what’s actually

required• Critical path analysis• Re-time• Levelling - better utilisation of existing resources• Overtime!• Crash• Fast Track



What type of resources are required?

How many?

For how long?

What % of time

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule

ResourceRequirements

Resource PlanningResource Planning



Top Down (Analogous) Estimating

Bottom Up Estimating

Parametric Estimating

Resource RatesChart of Accounts

Historical Information

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule


Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule


Cost Estimates

Cost EstimatingCost Estimating



Grouping of estimatesCharter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule


Cost Estimates

Charter

Scope Plan

WBS

Project Task List

NetworkDiagram

Duration Estimates

&Assumptions

Project Schedule


Cost Estimates

Baseline Budget

Cost BudgetingCost Budgeting



Project Management Information System

C h a r t e rS c o p e P l a n

W B SP r o j e c t T a s kL i s tN e t w o r k

D i a g r a mD u r a t i o n E s t i m a t e s

&A s s u m p t i o n sP r o j e c t

S c h e d u l eR e s o u r c e

R e q u i r e m e n t s

C o s t E s t i m a t e s

B a s e l i n e B u d g e t

Project Plan DevelopmentProject Plan Development



Quality PlanOrganisational PlanCommunication Plan

External Resource PlanProcurement Plan

Risk Management Plan

InitialProjectCharter

InitialProjectCharter

Project Management Information System

Project Standards

Stakeholder know how

Project Plan DevelopmentProject Plan Development


Quality PlanQuality Plan

• Standards– What requirements do you need to meet?

• Assurance– How will you assure the requirements will

be met?

• Control– How will you verify that the requirements

have been met?


Organisation PlanOrganisation Plan

• Responsibility Breakdown Structure– Who does what?

• Staffing Management Plan– When and how human resources will be

taken on and off the project

• Organisational Chart


Communication PlanCommunication Plan

Themes

Objectives, Scope

Agree “What” to Communicate

Channels, Media

Principles

Agree “How” to Communicate

People

Materials

Develop CapabilityTo Communicate

Escalate Major Issues

Adjust Approach

Review EffectivenessAddress Issues

Listen & Document

Immediate Response

Gather Feedback

Check Understanding

Open Environment

Deliver Communication


Communication PlanCommunication Plan

Channel/Vehicle Description Frequency Potential Audience

Project Plan Microsoft Project Plan with deliverables

Ongoing Steering committee; key stakeholders

Status Reports Progress against deliverables and identification of issues and risks

Weekly Project Office

Update Presentations

Monthly summary of status reports

Monthly All Staff [via key Process owners]

Info Letter Update on Schedule, benefits of Project one

Every Quarter

All Staff



Breakout Session 4


Procurement Procurement Management PlanManagement Plan• Procurement Planning

• Solicitation Planning

• Solicitation

• Source Selection

• Contract Administration

• Contract Close Out



Make or Buy

Expert Judgement (internal capability / internal capacity / need

for control/ Protection of Intellectual Property / Cost)

Contract Type Selection (Fixed Cost / Cost Reimbursable / Unit Price

Contract)

Scope Statement

Market Conditions

Procurement Management Plan

e.g. What type of contracts will be used?

How will multiple suppliers be managed?

Statement of Work

Procurement PlanningProcurement Planning



Standard Forms

Expert Judgement

Procurement Management Plan e.g. What type of contracts will be used? How will multiple suppliers be

managed?

Statement of Work

Bid Documents

Evaluation Criteria

Solicitation PlanningSolicitation Planning



Advertising

Bidders Conference

Agencies

Internet

Bid Documents

Evaluation Criteria

Proposal

SolicitationSolicitation



Screening System

Weighting System

Contract Negotiation

ContractProposal

Evaluation Criteria

Organisational Policies

Source SelectionSource Selection



Change Control

Performance Measurement

Payment

Contract

Work Results

Invoices

Change Requests

Contract Changes

Payment Requests

Contract AdministrationContract Administration



Procurement AuditContract Documentation

Contract File

Formal Acceptance and Closure

Contract Close OutContract Close Out


Risk Management PlanRisk Management Plan

• Risk Identification

• Risk Quantification

• Risk Response Development

• Risk Response Control


EVERY project carries a number of risks...

• How likely is it to happen?

• How severe will the impact be if it does happen?

• How do we reduce the likelihood (mitigation)?

• How do we deal with the consequences if it occurs (contingency)?

What is a Risk?What is a Risk?

A condition or circumstance which may occur which could a negative affect on the success of your project at some point IN THE FUTURE



Check Lists

Interviewing

Feedback

Contract Documentation

Sources of Risk

Potential Risk Events

Risk Symptoms

Risk IdentificationRisk Identification



Judgement

Decision Trees

Statistical Sums

Stakeholder Tolerance

Potential Risk Events

Cost Estimates

Duration Estimates

Risks to Accept

Risks to Pursue

Risk QuantificationRisk Quantification


Statistical SumsStatistical Sums

PERT

• Standard Deviation = (Worse Case - Best Case)/6

• Variance = [(Worse Case - Best Case)/6]2

The higher the variance the greater the risk...



Mitigating Approach

Contingency Planning

Insurance

Procurement

Risk Management Plan

Contingency Plans

Reserves

Risks to Accept

Risks to Pursue

Risk Response DevelopmentRisk Response Development



Work Arounds Corrective ActionRisk Management Plan

Actual Risks

Risk Response ControlRisk Response Control


Some Common Risk Some Common Risk FactorsFactors

•Project size and/or complexity•External environment influences•Technology (experience, reliability, etc)•Availability of experienced resources•Project sponsorship•Clarity of project direction


Risk Management Plan Risk Management Plan (continued)(continued)During the life of the project, the project manager should strive to

reduce the:– impact, and– probability

of all risks facing the project. Regular (at least monthly) review meetings should re-assess the probability and impact of all risks and the risk management plan should be updated accordingly.

Severe risks should have a robust contingency plan and a comprehensive mitigation strategy, although a ‘wait and see’ policy may be appropriate in some circumstances.


Rate Risks based on probability x Impact

Risk Probability x Impact = Rating

a 1 1 = 1

b 3 3 = 9

c 2 3 = 6

Risk Management Plan Risk Management Plan (continued(continued))


Risk Management PlanRisk Management Plan

Tips: • Avoid probability ratings of 2 (make a

decision is it high or low)• Convert low probability risks to assumptions

based on mitigating approach• Place mitigating approach to high probability

risks into action plans• Escalate risks to steering committee based

on severity and/or lack of contingency plan



Breakout Session 5


• Review / Establish Project Standards & Procedures;

• Develop Project Management Information System

• Develop Project Plans

Planning the ProjectPlanning the ProjectKey Project Manager ActivitiesKey Project Manager Activities


The PMI® Project The PMI® Project Management Life CycleManagement Life Cycle

InitiatingProcesses

InitiatingProcesses

PlanningProcesses

PlanningProcesses

ControllingProcesses

ControllingProcesses

ClosingProcesses

ClosingProcesses

ExecutingProcesses

ExecutingProcesses

1 © the delos partnership 2004 project management planning the project

Documents

project slide

delos partnership

scope slide

scope planning slide

project plan development

project team

critical path critical

resource planning