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Chapter 4 Planning The Project Chapter 4 Planning The Project


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MOST MANAGERS DO NOT LIKE PLANNING DUE TO THE FOLLOWING: MOST MANAGERS DO NOT LIKE PLANNING DUE TO THE FOLLOWING:

* It takes time.* You have to think.* It involves paper work.* You are bound to systematic procedures.* You are committed to achieve a specific

result within a specified time period.

* It takes time.* You have to think.* It involves paper work.* You are bound to systematic procedures.* You are committed to achieve a specific

result within a specified time period.


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Effective Planning Effective Planning An effective plan will be:-

* Explicit - stated in detail, leaving nothingmerely implied .

* Intelligible - it must be understood and becomprehensible .

* Flexible - capable of accepting change.* Controllable - capable of being monitored for

control purposes.


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Planning Fundamentals Planning Fundamentalsy If the task is well understood prior to

being performed, much of the work can bepreplanned.

y If the task is not understood, then duringthe actual task execution more knowledgeis gained that, in turn, leads to changes inresource allocations, schedules, andpriorities.

y The more uncertain the task, the greater the amount of information that must beprocessed in order to ensure effectiveperformance.

y If the task is well understood prior tobeing performed, much of the work can bepreplanned.

y If the task is not understood, then duringthe actual task execution more knowledgeis gained that, in turn, leads to changes inresource allocations, schedules, andpriorities.

y The more uncertain the task, the greater the amount of information that must beprocessed in order to ensure effectiveperformance.


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Reasons for Planning Reasons for Planning y To eliminate or reduce uncertaintyy To improve efficiency of the operationy To obtain a better understanding of theobjectivesy To provide a basis for monitoring and

controlling work

y To eliminate or reduce uncertaintyy To improve efficiency of the operation

y To obtain a better understanding of theobjectivesy To provide a basis for monitoring and

controlling work


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DEFINITION OF A PROJECT LIFE CYCLE DEFINITION OF A PROJECT LIFE CYCLE

ResourcesUtilized

RESOURCES

TIME

CONCEPTUALPHASE

DETAILEDPLANNING PHASE

FEASIBILITY ANDPRELIMINARY

PLANNING PHASE

IMPLEMENTATIONPHASE

CONVERSIONOR TERMINATION

PHASE

PMO

PMO *


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The Line Manager(s) ?The Project Manager ?

Both Parties ?

*

Who plans the project?* Who executes the project?* Who is responsible for monitoring work and

controlling work?* Who is responsible for providing feedback regarding

the planning and execution phases of a project?

*

Who plans the project?* Who executes the project?* Who is responsible for monitoring work and

controlling work?* Who is responsible for providing feedback regarding

the planning and execution phases of a project?

PLANNING QUESTIONS OFTEN ASKED


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Project Managers

Responsibility

Project Managers

Responsibilityy Project Manager will define:

Goals and objectives

Major milestones Requirements Ground rules and assumptions Time, cost, and performance constraints Operating procedures Administrative policy Reporting requirements

y Project Manager will define: Goals and objectives

Major milestones Requirements Ground rules and assumptions Time, cost, and performance constraints Operating procedures Administrative policy Reporting requirements


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Line Managers

Responsibility

Line Managers

Responsibilityy Line manager will define:

Detailed task descriptions to implement

objectives, requirements, and milestones Detailed schedules and manpower allocationsto support budget and schedule

Identification of areas of risk, uncertainty, and

conflict

y Line manager will define: Detailed task descriptions to implement

objectives, requirements, and milestones Detailed schedules and manpower allocationsto support budget and schedule

Identification of areas of risk, uncertainty, and

conflict


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Senior Managements

Responsibility

Senior Managements

Responsibilityy Senior management (project sponsor)

will:

Act as the negotiator for disagreementsbetween project and line management

Provide clarification of critical issues Provide communication link with customers

senior management

y Senior management (project sponsor)will:

Act as the negotiator for disagreementsbetween project and line management Provide clarification of critical issues Provide communication link with customers

senior management


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THE SEVEN PHASES OF A PROJECT

1. Wild enthusiasm2. Disillusionment3. Chaos4. Search for the guilty

5. Punishment of the innocent6. Promotion of the non-participants7. Define the requirements

THE SEVEN PHASES OF A PROJECT

1. Wild enthusiasm2. Disillusionment3. Chaos4. Search for the guilty

5. Punishment of the innocent6. Promotion of the non-participants

7. Define the requirements


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Planning/Scheduling Tools Planning/Scheduling Tools


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Defining Requirements Defining Requirements

y The statement of work (SOW)y The project specificationsy The milestone scheduley The work breakdown structure (WBS)

y The statement of work (SOW)y The project specificationsy The milestone scheduley The work breakdown structure (WBS)


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STATEMENT-OF-WORK (SOW)

COMPLEXITY IS DETERMINED BY TOP

MANAGEMENT, CUSTOMER AND/OR USERGROUP(S)

FOR INTERNAL PROJECTS:SOW IS PREPARED BY THE PROJECT OFFICE

AND/OR USER GROUP(S)


COMPLEXITY IS DETERMINED BY TOP

MANAGEMENT, CUSTOMER AND/OR USERGROUP(S)

FOR INTERNAL PROJECTS:

SOW IS PREPARED BY THE PROJECT OFFICEAND/OR USER GROUP(S)


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POINTS TO ADDRESS WHEN

DEVELOPING A STATEMENT-OF-WORK

POINTS TO ADDRESS WHEN

DEVELOPING A STATEMENT-OF-WORK y Purpose - objectivesy Exclusions - what should not be done

y Quantities - how manyy Schedule - when the work will be

started/completedy

Deliverables (i.e... work done)y Acceptance criteria - what method will be used toaccept deliverables

y Responsibility - department, office or personresponsible

y Purpose - objectivesy Exclusions - what should not be done

y Quantities - how manyy Schedule - when the work will be

started/completedy Deliverables (i.e... work done)y Acceptance criteria - what method will be used to

accept deliverablesy Responsibility - department, office or person

responsible


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Preparation of internal SOWsy Project office and/or user groups

Preparation of external SOWsy Dependent on situation, & complexityy Project manager/ line managers and project

sponsor y Client who may have the capabilitiesy

Client may decide to contract out to an independentbodyy Client may contract your services

PREPARATION OF A STATEMENT OF WORK REQUIRES TRAINING RATHER THAN LUCK.

Preparation of internal SOWsy Project office and/or user groups

Preparation of external SOWsy Dependent on situation, & complexityy Project manager/ line managers and project

sponsor y Client who may have the capabilitiesy

Client may decide to contract out to an independentbodyy Client may contract your services

PREPARATION OF A STATEMENT OF WORK REQUIRES TRAINING RATHER THAN LUCK.

WHO PREPARES THE STATEMENT-OF-WORK (SOW)WHO PREPARES THE



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IF A STATEMENT OF WORK ISMISINTERPRETED, IS IT

NORMALLY IN FAVOR OFTHE CLIENT OR

CONTRACTOR ?

IF A STATEMENT OF WORK ISMISINTERPRETED, IS IT

NORMALLY IN FAVOR OFTHE CLIENT OR

CONTRACTOR ?

STATEMENT-OF-WORK RISKS STATEMENT-OF-WORK RISKS


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Statement of Work Elements Statement of Work Elementsy General scope of the worky Objectives and related backgroundy Contractors tasksy Contractor end-item performance requirementsy Reference to related studies, documentation,

and specificationsy Data items (documentation)y Support equipment for contract end-item

y General scope of the worky Objectives and related backgroundy Contractors tasksy Contractor end-item performance requirementsy Reference to related studies, documentation,

and specificationsy Data items (documentation)y Support equipment for contract end-item


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Statement of Work Elements Statement of Work Elements

y Customer-furnished property, facilities,

equipment, and servicesy Customer-furnished documentationy Schedule of performancey Exhibits, attachments, and appendices

y Customer-furnished property, facilities,

equipment, and servicesy Customer-furnished documentationy Schedule of performancey Exhibits, attachments, and appendices

(Continued)


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The Cost Of Paperwork


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Problem Areas Problem Areasy Project objectives/goals are not agreeable

to all parties.y Project objectives are too rigid to

accommodate changing prioritiesy Insufficient time exists to define

objectives well.y Objectives are not adequately quantified.y Objectives are not documented wellenough.y Efforts of client and project personnel are

not coordinated.y Personnel turnover is high.

y Project objectives/goals are not agreeableto all parties.

y Project objectives are too rigid toaccommodate changing priorities

y Insufficient time exists to defineobjectives well.

y Objectives are not adequately quantified.

y Objectives are not documented wellenough.y Efforts of client and project personnel are

not coordinated.y Personnel turnover is high.


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Misinterpretation Areas Misinterpretation Areasy Mixing tasks, specifications, approvals,

and special instructionsy Using imprecise language (nearly,

optimum, approximately, etc.)y No pattern, structure, or chronological

order y Wide variation in size of tasksy Wide variation in how to describe details

of the worky

Failing to get third-party review

y Mixing tasks, specifications, approvals,and special instructions

y Using imprecise language (nearly,optimum, approximately, etc.)

y No pattern, structure, or chronologicalorder

y Wide variation in size of tasksy Wide variation in how to describe details

of the worky

Failing to get third-party review


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WORK BREAKDOWN STRUCTURE WORK BREAKDOWN STRUCTURE

y Can be developed using a top-down or bottom-up approach

y Can be hardware-related, function-related, or

a combinationy Depth of WBS must balance out

management effort against planningaccuracy (influences technical and cost

control)y For accuracy purposes the WBS should be

taken down several levelsy The WBS must be structured for objective

control & evaluation

y Can be developed using a top-down or bottom-up approach

y Can be hardware-related, function-related, or

a combinationy Depth of WBS must balance outmanagement effort against planningaccuracy (influences technical and cost

control)y For accuracy purposes the WBS should be

taken down several levelsy The WBS must be structured for objective

control & evaluation


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Work Breakdown

Structure (WBS)

Work Breakdown

Structure (WBS)y The total program can be described as asummation of subdivided elements.

y Planning can be performed.y Costs and budgets can be established.y Time, cost, and performance can be

tracked.y Objectives can be linked to company

resources in a logical manner.y Schedules and status-reporting

procedures can be established.

y The total program can be described as asummation of subdivided elements.

y Planning can be performed.y Costs and budgets can be established.y Time, cost, and performance can be

tracked.y Objectives can be linked to company

resources in a logical manner.y Schedules and status-reporting

procedures can be established.


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Work Breakdown

Structure (WBS) (Continued)

Work Breakdown

Structure (WBS) (Continued)y Network construction and control

planning can be initiated.

y The responsibility assignments for eachelement can be established.

y Network construction and controlplanning can be initiated.

y The responsibility assignments for eachelement can be established.


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y Have clearly defined start datesy Have clearly defined end datesy Must be able to be used as a

communicative tool in which you cancommunicate the expected results

y Be estimated on a total time duration

not when the individual activities start or endy Be structured so that a minimum of

project office control and documentation(i.e. forms) are necessary

y Have clearly defined start datesy Have clearly defined end datesy Must be able to be used as a

communicative tool in which you cancommunicate the expected results

y Be estimated on a total time duration

not when the individual activities start or endy Be structured so that a minimum of

project office control and documentation(i.e. forms) are necessary

IN SETTING UP A WORK BREAKDOWN STRUCTURE THE ACTIVITIES MUST:


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Most common type: Six-Level Indentured Structure

LEVEL DESCRIPTION1 Total Program

2 Project(s)3 Task(s)4 Subtask(s)

5 Work Package(s)6 Level of Effort

WORK BREAKDOWN

STRUCTURE (WBS)


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THE WBS BREAKS WORK DOWN INTO SMALLER ACTIVITIES THUS REDUCING THE RISK THAT ANY MAJOR OR MINOR ITEM WILL BE OMITTED

THE WBS BREAKS WORK DOWN INTO SMALLER ACTIVITIES THUS REDUCING THE RISK THAT ANY MAJOR OR MINOR ITEM WILL BE OMITTED

WBS: SIX-LEVEL STRUCTURE

Usually specified by the client andmanaged the project manager.

Generated by contractor for in-housecontrol and managed by thefunctional manager(s).

Planning accuracy is dependent on the WBS levelselected. The lower the level the greater is the planningaccuracy but the higher the management cost .

LEVELS RESPONSIBILITY

123456


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WBS TasksWBS Tasks

y Have clearly defined start and end datesy Be usable as a communications tool in

which results can be compared withexpectations

y Be estimate on a total time duration, notwhen the task must start or end

y Be structured so that a minimum of project office control and documentation(i.e., forms) is necessary

y Have clearly defined start and end datesy Be usable as a communications tool in

which results can be compared withexpectations

y Be estimate on a total time duration, notwhen the task must start or end

y Be structured so that a minimum of project office control and documentation(i.e., forms) is necessary


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DEVELOPING A WORK BREAKDOWN STRUCTURE (WBS)

DEVELOPING A WORK BREAKDOWN STRUCTURE (WBS)

PROTOTYPEDEVELOPMENT

(1.1.0)

ADVANCEDDEVELOPMENT

(1.2.0)

PRE-PRODUCTION

QUALIFICATION(1.3.0)

FINALPRODUCTION

(1.4.0)

UTILITY CAR (1.00.00)


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1.00.001.00.00

1.1.01.1.0 1.2.01.2.0 1.3.01.3.0 1.4.01.4.0

1.2.11.2.1 1.2.31.2.31.2.21.2.2

1.2.2.11.2.2.1 1.2.2.21.2.2.2 1.2.2.31.2.2.3

1.2.2.1.11.2.2.1.1 1.2.2.1.21.2.2.1.2 1.2.2.1.31.2.2.1.3 1.2.2.1.41.2.2.1.4

WBS ExampleWBS LEVELS

5

4

3

2

1 PROGRAM

PROJECT

TASK

SUBTASK

WORKPACKAGE


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WBS ControlsWBS Controls

WORK

BREAKDOWN

STRUCTURE

WORK

BREAKDOWN

STRUCTURE

MGT.

COORDIN.

MGT.

COORDIN.

ORGANIZ.

CHARTS

ORGANIZ.

CHARTS

COSTSCOSTSACCOUNT-

ABILITY

ACCOUNT-

ABILITY

DECISION

TREES

DECISION

TREESSCHEDULESSCHEDULES


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WBS Interfacing BenefitsWBS Interfacing Benefits

y The responsibility assignment matrixy Network schedulingy Costingy Risk analysisy Organizational structure

y Coordination of objectivesy Control (including contract

administration)

y The responsibility assignment matrixy Network schedulingy Costingy Risk analysisy Organizational structure

y Coordination of objectivesy Control (including contract

administration)


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Work Package Control Point Work Package Control Point

WORKPACKAGES

WBS

FUNCTIONALORGANIZATION


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WBS Work PackagesWBS Work Packages

y Represents units of work at the levelwhere the work is performed

y Clearly distinguishes one work packagefrom all others assigned to a singlefunctional group

y Contains clearly defined start and enddates that are representative of physicalaccomplishment

y Target is 80 hours and about two weeks,

but depends on size/nature of the project.

y Represents units of work at the levelwhere the work is performed

y

Clearly distinguishes one work packagefrom all others assigned to a singlefunctional group

y Contains clearly defined start and enddates that are representative of physicalaccomplishment

y Target is 80 hours and about two weeks,

but depends on size/nature of the project.


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WBS Packages (Continued)WBS Packages (Continued)

y Specifies a budget in terms of dollars,man-hours, or other measurable units

y Limits the work to be performed torelatively short periods of time tominimize the work-in-process effort

y Specifies a budget in terms of dollars,man-hours, or other measurable units

y

Limits the work to be performed torelatively short periods of time tominimize the work-in-process effort


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The Project Kickoff Meeting The Project Kickoff Meeting


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Knowing When To Pull The Plug Knowing When To Pull The Plug


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REASONS WHY PLANS FAIL

y Corporate goals not understood lower down in the organization/company

y Plans encompass too much in too little timey Poor financial estimatesy Plans based upon insufficient datay

Poor staff requirementsy Insufficient time allocated for project estimating

REASONS WHY PLANS FAIL

y Corporate goals not understood lower down in the organization/company

y Plans encompass too much in too little timey Poor financial estimatesy Plans based upon insufficient datay

Poor staff requirementsy Insufficient time allocated for project estimating


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OTHER REASONS WHY PLANS FAIL

y

No attempt made to systemize the planning processy Planning was performed by a planning groupy No one knows the ultimate objectivesy No one knows the major milestone datesy Project estimates are best guesses and are not based

on any standards, or historyy No one bothered to see if there would be personnel

available with the necessary skillsy People not working towards the same specsy

Constant shuffle of personnel in and out of theproject with little regard for the scheduley Change of management and their objectives.y Change(s) in the macro environment

OTHER REASONS WHY PLANS FAIL

y

No attempt made to systemize the planning processy Planning was performed by a planning groupy No one knows the ultimate objectivesy No one knows the major milestone datesy Project estimates are best guesses and are not based

on any standards, or historyy No one bothered to see if there would be personnel

available with the necessary skillsy People not working towards the same specsy

Constant shuffle of personnel in and out of theproject with little regard for the scheduley Change of management and their objectives.y Change(s) in the macro environment


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Stopping Projects Stopping Projectsy Final achievement of the objectivesy Poor initial planning and market

prognosisy A better alternative is foundy A change in the company interest and

strategyy

Allocated time is exceededy Key people leave the organizationy Personal whims of managementy Problem too complex for the resources

available

y Final achievement of the objectivesy Poor initial planning and market

prognosisy A better alternative is foundy A change in the company interest and

strategyy

Allocated time is exceededy Key people leave the organizationy Personal whims of managementy Problem too complex for the resources

available


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Behavioral Stoppages Behavioral Stoppages

y Poor moraley Poor human relationsy Poor labor productivityy No commitment by those involved in the

project

y Poor moraley Poor human relations

y Poor labor productivityy No commitment by those involved in the

project


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Ways to TerminateWays to Terminatey Orderly planned terminationy The hatchet (withdrawal of funds and

removal of personnel)y Reassignment of people to higher priority

effortsy Redirection of efforts toward different

objectivesy Burying it or letting it die on the vine (i.e.,

not taking any official action)

y Orderly planned terminationy The hatchet (withdrawal of funds and

removal of personnel)y Reassignment of people to higher priority

effortsy Redirection of efforts toward different

objectivesy Burying it or letting it die on the vine (i.e.,

not taking any official action)


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Termination Problem

Areas

Termination Problem

Areasy Worker moraley Reassignment of personnely Adequate documentation and wrap-up

y Worker moraley Reassignment of personnel

y Adequate documentation and wrap-up


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Planning For Project Completion


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Planned Closure Planned Closure

y Transferring responsibilityy Completion of project records

Historic reports Post project analysis

y Documenting results to reflect as builtproduct or installation

y Acceptance by sponsor/user y Satisfying contractual requirements

y Transferring responsibilityy Completion of project records

Historic reports Post project analysis

y Documenting results to reflect as builtproduct or installation

y Acceptance by sponsor/user y Satisfying contractual requirements


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Planned Closure (Continued) Planned Closure (Continued)

y Releasing resources Reassignment of project office team members

Disposition of functional personnel Disposition of materialsy Closing out work orders (financial

closeout)y Preparing for financial payments

y Releasing resources Reassignment of project office team members

Disposition of functional personnel Disposition of materialsy Closing out work orders (financial

closeout)y Preparing for financial payments


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Updating The Project Diary


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Managing Scope Changes Managing Scope Changes


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Change Management Change Management y YOU CANNOT MANAGE YOUR CUSTOMER

WITHOUT MANAGEMENT OF YOUR PROJECTMANAGEMENT PROCESS.

y WHEN YOUR CUSTOMER INITIATES A CHANGEREQUEST, YOU MUST BE ABLE TO PREDICTIMMEDIATELY THE IMPACT ON SCHEDULE ,COST AND TECHNICAL PERFORMANCE.

y YOU CANNOT MANAGE YOUR CUSTOMERWITHOUT MANAGEMENT OF YOUR PROJECTMANAGEMENT PROCESS.

y WHEN YOUR CUSTOMER INITIATES A CHANGEREQUEST, YOU MUST BE ABLE TO PREDICTIMMEDIATELY THE IMPACT ON SCHEDULE ,

COST AND TECHNICAL PERFORMANCE.


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Unmanaged vs. Managed ChangesUnmanaged vs. Managed Changes

UnmanagedChangeUnmanagedChange

Where TIMEis invested

Where TIMEis invested

HowENERGYis invested

HowENERGYis invested

WhichRESOURCES

are used

WhichRESOURCES

are used

ManagedChangeManagedChange

Back-end Back-end

Front-end

Front-end

Rework Enforcement Compliance Supervision

Rework Enforcement Compliance Supervision

Education Communication Planning Improvements Value-Added

Education Communication Planning Improvements Value-Added

Senior Managementand key

players only

Senior Managementand key

players only

Stakeholders(internal) Suppliers Customers

Stakeholders(internal) Suppliers Customers


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DefinitionDefinition

Cost of CorrectionsCost of Corrections

$1$1

PreliminaryPlanning

PreliminaryPlanning

$5$5 $25$25 $100$100 $1000$1000

DetailedPlanningDetailedPlanning ExecutionExecution

Implementation/Conversion

Implementation/Conversion


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Integrated Processes for The 21st Century

Integrated Processes for The 21st Century

Project ManagementProject Management

ConcurrentEngineeringConcurrentEngineering Total QualityManagementTotal QualityManagement

Risk Management

Risk Management

ChangeManagement

ChangeManagement

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Chapter4[1] Reji