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Project Management
Planning
Project Management
Planning
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Outline
Introduction General Planning Life-Cycle Phases Proposal Preparation Understanding Participant’s Roles Project Planning The Statement of Work Project Specifications
Introduction General Planning Life-Cycle Phases Proposal Preparation Understanding Participant’s Roles Project Planning The Statement of Work Project Specifications
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Outline (continued)
Milestone Schedules Work Breakdown Structure WBS Decomposition Problems Role of the Executive in Project Selection Role of the Executive in Planning The Planning Cycle Work Planning Authorization Why Do Plans Fail ?
Milestone Schedules Work Breakdown Structure WBS Decomposition Problems Role of the Executive in Project Selection Role of the Executive in Planning The Planning Cycle Work Planning Authorization Why Do Plans Fail ?
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Outline (continued)
Stopping Projects Handling Project Phaseouts and Transfers Detailed Schedules and Charts Master Production Schedules Project Plan Total Project Planning The Project Charter
Stopping Projects Handling Project Phaseouts and Transfers Detailed Schedules and Charts Master Production Schedules Project Plan Total Project Planning The Project Charter
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Outline (continued)
Management Control The Project Manager-Line Manager
Interface Fast-Tracking Configuration Management
Management Control The Project Manager-Line Manager
Interface Fast-Tracking Configuration Management
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IntroductionMost managers don’t 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.
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Introduction – Project planning and control system
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Planning -- ComponentsPlanning -- Components
ObjectiveProgramScheduleBudgetForecastOrganizationPolicyProcedureStandard
ObjectiveProgramScheduleBudgetForecastOrganizationPolicyProcedureStandard
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Planning – Effective PlanningPlanning – Effective Planning
An effective plan will be:
* Explicit - stated in detail, leaving nothing merely implied.
* Intelligible - it must be understood and be comprehensible.
* Flexible - capable of accepting change.
* Controllable - capable of being monitored for control purposes.
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Planning FundamentalsPlanning Fundamentals
If the task is well understood prior to being performed, much of the work can be preplanned.
If the task is not understood, then during the actual task execution more knowledge is gained that, in turn, leads to changes in resource allocations, schedules, and priorities.
The more uncertain the task, the greater the amount of information that must be processed in order to ensure effective performance.
If the task is well understood prior to being performed, much of the work can be preplanned.
If the task is not understood, then during the actual task execution more knowledge is gained that, in turn, leads to changes in resource allocations, schedules, and priorities.
The more uncertain the task, the greater the amount of information that must be processed in order to ensure effective performance.
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Reasons for PlanningReasons for Planning
To eliminate or reduce uncertaintyTo improve efficiency of the operationTo obtain a better understanding of the
objectivesTo provide a basis for monitoring and
controlling work
To eliminate or reduce uncertaintyTo improve efficiency of the operationTo obtain a better understanding of the
objectivesTo provide a basis for monitoring and
controlling work
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System/Product Life CyclesSystem/Product Life Cycles
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Life Cycle Phases – Definition
ResourcesUtilized
RE
SO
UR
CE
S
TIME
CONCEPTUAL PHASE
DETAILEDPLANNING PHASE
FEASIBILITY ANDPRELIMINARY
PLANNING PHASE
IMPLEMENTATIONPHASE
CONVERSIONOR TERMINATION
PHASE
PM
O
PM
O *
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Life Cycle Phases – Dollars percentages
Phase Percent of direct labor dollars(%)
Conceptualization 5
Feasibility study 10
Preliminary planning 15
Detail planning 20
Execution 40
Commissioning 10
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Life Cycle Phases in Different AreasLife Cycle Phases in Different Areas
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A Stream of ProjectsA Stream of Projects
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The Line Manager(s) ?The Project Manager ?
Both Parties ?
Participants’ RolesPlanning questions often asked
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 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?
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Project Manager’s ResponsibilityProject Manager’s ResponsibilityProject Manager will define:
Goals and objectivesMajor milestonesRequirementsGround rules and assumptionsTime, cost, and performance constraintsOperating proceduresAdministrative policyReporting requirements
Project Manager will define:Goals and objectivesMajor milestonesRequirementsGround rules and assumptionsTime, cost, and performance constraintsOperating proceduresAdministrative policyReporting requirements
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Line Manager’s ResponsibilityLine Manager’s Responsibility Line manager will define:
Detailed task descriptions to implement objectives, requirements, and milestones
Detailed schedules and manpower allocations to support budget and schedule
Identification of areas of risk, uncertainty, and conflict
Line manager will define:Detailed task descriptions to implement
objectives, requirements, and milestonesDetailed schedules and manpower allocations
to support budget and scheduleIdentification of areas of risk, uncertainty, and
conflict
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Senior Management’s ResponsibilitySenior Management’s ResponsibilitySenior management (project sponsor) will:
Act as the negotiator for disagreements between project and line management
Provide clarification of critical issuesProvide communication link with
customer’s senior management
Senior management (project sponsor) will:Act as the negotiator for disagreements
between project and line managementProvide clarification of critical issuesProvide communication link with
customer’s senior management
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Project PlanningProject Planning
Required information on project planning:The statement of work (SOW)The project specificationsThe milestone schedule The work breakdown structure (WBS)
Required information on project planning:The statement of work (SOW)The project specificationsThe milestone schedule The work breakdown structure (WBS)
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Statement of Work -- termsStatement of Work -- terms
Scopethe summation of all deliverables required as part of
the project. Project scope
The work that must be completed to achieve the final scope of the project, namely the products, services, and end results.
Scope statementA document that provides the basis for making
future decisions such as scope changes.
Scopethe summation of all deliverables required as part of
the project. Project scope
The work that must be completed to achieve the final scope of the project, namely the products, services, and end results.
Scope statementA document that provides the basis for making
future decisions such as scope changes.
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Statement of Work -- termsStatement of Work -- terms
Statement of workA narrative description of the end results to be
provided under the contract.
Statement of workA narrative description of the end results to be
provided under the contract.
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STATEMENT-OF-WORK (SOW)
COMPLEXITY IS DETERMINED BY TOP MANAGEMENT, CUSTOMER AND/OR
USER GROUP(S)
FOR INTERNAL PROJECTS:SOW IS PREPARED BY THE PROJECT
OFFICE AND/OR USER GROUP(S)
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Points Reminded When Developing a SOW
Purpose - objectivesExclusions - what should not be doneQuantities - how manySchedule - when the work will be
started/completedDeliverables (i.e... work done)
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Points Reminded When Developing a SOW (continued)
Acceptance criteria - what method will be used to accept deliverables
Responsibility - department, office or person responsible
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Preparation of internal SOWs Project office and/or user groups
Preparation of external SOWs Dependent on situation, & complexity Project manager/ line managers and project
sponsor Client who may have the capabilities Client may decide to contract out to an independent
body Client may contract your services
Who Prepares the SOW
PREPARATION OF A STATEMENT OF WORK REQUIRES TRAINING RATHER THAN LUCK.
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Statement of Work -- ElementsStatement of Work -- Elements
General scope of the workObjectives and related backgroundContractor’s tasksContractor end-item performance requirementsReference to related studies, documentation,
and specificationsData items (documentation)Support equipment for contract end-item
General scope of the workObjectives and related backgroundContractor’s tasksContractor end-item performance requirementsReference to related studies, documentation,
and specificationsData items (documentation)Support equipment for contract end-item
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Customer-furnished property, facilities, equipment, and services
Customer-furnished documentationSchedule of performanceExhibits, attachments, and appendices
Customer-furnished property, facilities, equipment, and services
Customer-furnished documentationSchedule of performanceExhibits, attachments, and appendices
Statement of Work -- Elements (Continued)Statement of Work -- Elements (Continued)
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Problem Areas Problem Areas Project objectives/goals are not agreeable to all
parties.Project objectives are too rigid to accommodate
changing prioritiesInsufficient time exists to define objectives well.Objectives are not adequately quantified.Objectives are not documented well enough.Efforts of client and project personnel are not
coordinated.Personnel turnover is high.
Project objectives/goals are not agreeable to all parties.
Project objectives are too rigid to accommodate changing priorities
Insufficient time exists to define objectives well.Objectives are not adequately quantified.Objectives are not documented well enough.Efforts of client and project personnel are not
coordinated.Personnel turnover is high.
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Misinterpretation AreasMisinterpretation Areas
Mixing tasks, specifications, approvals, and special instructions
Using imprecise language (“nearly,” “optimum,” “approximately,” etc.)
No pattern, structure, or chronological orderWide variation in size of tasksWide variation in how to describe details of
the workFailing to get third-party review
Mixing tasks, specifications, approvals, and special instructions
Using imprecise language (“nearly,” “optimum,” “approximately,” etc.)
No pattern, structure, or chronological orderWide variation in size of tasksWide variation in how to describe details of
the workFailing to get third-party review
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IF A STATEMENT OF WORK IS
MISINTERPRETED, IS IT IN FAVOR OF THE CONTRACTOR OR CUSTOMER?
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Project SpecificationProject Specification
Used for man-hour, equipment, and material estimates
Small change could cause large cost overruns
Standard for pricing out proposal
Used for man-hour, equipment, and material estimates
Small change could cause large cost overruns
Standard for pricing out proposal
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Project Specification -- exampleProject Specification -- example
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Milestone SchedulesMilestone Schedules
Project start dateProject end dateOther major milestones
Review meetingsPrototype availableProcurementTesting
Reports or deliverables
Project start dateProject end dateOther major milestones
Review meetingsPrototype availableProcurementTesting
Reports or deliverables
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Work Breakdown Structure (WBS) -- Definition
A product (services) oriented family tree subdivision of the hardware, services, and data required to produce the end product.
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Work Breakdown Structure (WBS)Work Breakdown Structure (WBS)
The total program can be described as a summation of subdivided elements.
Planning can be performed.Costs and budgets can be established.Time, cost, and performance can be tracked.Objectives can be linked to company resources
in a logical manner.Schedules and status-reporting procedures can
be established.
The total program can be described as a summation of subdivided elements.
Planning can be performed.Costs and budgets can be established.Time, cost, and performance can be tracked.Objectives can be linked to company resources
in a logical manner.Schedules and status-reporting procedures can
be established.
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Can be developed using a top-down or bottom-up approach
Can be hardware-related, function-related, or a combination
Depth of WBS must balance out management effort against planning accuracy (influences technical and cost control)
For accuracy purposes the WBS should be taken down several levels
The WBS must be structured for objective control & evaluation
Work Breakdown Structure (WBS)Work Breakdown Structure (WBS)
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Work Breakdown Structure (WBS) (Continued)
Work Breakdown Structure (WBS) (Continued)
Network construction and control planning can be initiated.
The responsibility assignments for each element can be established.
Network construction and control planning can be initiated.
The responsibility assignments for each element can be established.
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Detailed planning can be performed
Costs and budgets can be established
Objectives can be linked to available resources in a logical manner
Specific authority and responsibility can be assigned
IT IS TO STRUCTURE AN ASSIGNED PROJECT INTO VARIOUS ACTIVITIES IN ORDER THAT:
Work Breakdown Structure (WBS)--Purpose
Work Breakdown Structure (WBS)--Purpose
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Have clearly defined start datesHave clearly defined end datesMust be able to be used as a communicative tool
in which you can communicate the expected results
Be estimated on a “total time duration” not when the individual activities start or end
Be structured so that a minimum of project office control and documentation (i.e. forms) are necessary
WBS – setup
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Most common type: Six-Level Indentured Structure
LEVEL DESCRIPTION1 Total Program2 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
WBS: SIX-LEVEL STRUCTURE
Usually specified by the client and managed the project manager.
Generated by contractor for in-house control and managed by the functional manager(s).
Planning accuracy is dependent on the WBS level selected. The lower the level the greater is the planning accuracy but the higher the management cost.
LEVELS RESPONSIBILITY
1 2 3 4 5 6
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WBS for Objective Control and Evaluation
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WBS -- TasksWBS -- Tasks
Have clearly defined start and end datesBe usable as a communications tool in which
results can be compared with expectationsBe estimate on a “total” time duration, not
when the task must start or endBe structured so that a minimum of project
office control and documentation (i.e., forms) is necessary
Have clearly defined start and end datesBe usable as a communications tool in which
results can be compared with expectationsBe estimate on a “total” time duration, not
when the task must start or endBe structured so that a minimum of project
office control and documentation (i.e., forms) is necessary
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WBS – Developing
PROTOTYPE
DEVELOPMENT
(1.1.0)
ADVANCED
DEVELOPMENT
(1.2.0)
PRE-PRODUCTION
QUALIFICATION
(1.3.0)
FINAL PRODUCTION
(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
The responsibility assignment matrixNetwork schedulingCostingRisk analysis Organizational structureCoordination of objectivesControl (including contract administration)
The responsibility assignment matrixNetwork schedulingCostingRisk analysis Organizational structureCoordination of objectivesControl (including contract administration)
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WBS -- exampleWBS -- example
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WBS -- exampleWBS -- example
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WBS -- exampleWBS -- example
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Work Package Control PointWork Package Control Point
WORK
PACKAGES
WBS
FUNCTIONAL
ORGANIZATION
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Work Package – The cost account interactionWork Package – The cost account interaction
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WBS --Work PackagesWBS --Work Packages
Represents units of work at the level where the work is performed
Clearly distinguishes one work package from all others assigned to a single functional group
Contains clearly defined start and end dates that are representative of physical accomplishment
Target is 80 hours and about two weeks, but depends on size/nature of the project.
Represents units of work at the level where the work is performed
Clearly distinguishes one work package from all others assigned to a single functional group
Contains clearly defined start and end dates that are representative of physical accomplishment
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)
Specifies a budget in terms of dollars, man-hours, or other measurable units
Limits the work to be performed to relatively short periods of time to minimize the work-in-process effort
Specifies a budget in terms of dollars, man-hours, or other measurable units
Limits the work to be performed to relatively short periods of time to minimize the work-in-process effort
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The Project Kickoff MeetingThe Project Kickoff Meeting
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Reasons Why Plan Fail Corporate goals not understood lower down in the organization/company
Plans encompass too much in too little time
Poor financial estimates
Plans based upon insufficient data
Poor staff requirements
Insufficient time allocated for project estimating
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No attempt made to systemize the planning process Planning was performed by a planning group No one knows the ultimate objectives No one knows the major milestone dates Project estimates are best guesses and are not based on
any standards, or history No one bothered to see if there would be personnel
available with the necessary skills People not working towards the same specs Constant shuffle of personnel in and out of the project
with little regard for the schedule Change of management and their objectives. Change(s) in the macro environment
Reasons Why Plan Fail
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Stopping ProjectsStopping ProjectsFinal achievement of the objectivesPoor initial planning and market prognosisA better alternative is foundA change in the company interest and
strategyAllocated time is exceededKey people leave the organizationPersonal whims of managementProblem too complex for the resources
available
Final achievement of the objectivesPoor initial planning and market prognosisA better alternative is foundA change in the company interest and
strategyAllocated time is exceededKey people leave the organizationPersonal whims of managementProblem too complex for the resources
available
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Behavioral StoppagesBehavioral Stoppages
Poor moralePoor human relationsPoor labor productivityNo commitment by those involved in the
project
Poor moralePoor human relationsPoor labor productivityNo commitment by those involved in the
project
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Ways to TerminateWays to Terminate
Orderly planned terminationThe “hatchet” (withdrawal of funds and
removal of personnel)Reassignment of people to higher priority effortsRedirection of efforts toward different
objectivesBurying it or letting it die on the vine (i.e.,
not taking any official action)
Orderly planned terminationThe “hatchet” (withdrawal of funds and
removal of personnel)Reassignment of people to higher priority effortsRedirection of efforts toward different
objectivesBurying it or letting it die on the vine (i.e.,
not taking any official action)
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Termination Problem AreasTermination Problem Areas
Worker moraleReassignment of personnelAdequate documentation and wrap-up
Worker moraleReassignment of personnelAdequate documentation and wrap-up
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Planned ClosurePlanned Closure
Transferring responsibilityCompletion of project records
Historic reportsPost project analysis
Documenting results to reflect “as built” product or installation
Acceptance by sponsor/userSatisfying contractual requirements
Transferring responsibilityCompletion of project records
Historic reportsPost project analysis
Documenting results to reflect “as built” product or installation
Acceptance by sponsor/userSatisfying contractual requirements
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Planned Closure (Continued)Planned Closure (Continued)
Releasing resourcesReassignment of project office team membersDisposition of functional personnelDisposition of materials
Closing out work orders (financial closeout)
Preparing for financial payments
Releasing resourcesReassignment of project office team membersDisposition of functional personnelDisposition of materials
Closing out work orders (financial closeout)
Preparing for financial payments
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Unmanaged vs. Managed ChangesUnmanaged vs. Managed Changes
UnmanagedChange UnmanagedChange
Where TIMEis invested
Where TIMEis invested
How ENERGYis invested
How ENERGYis invested
WhichRESOURCES
are used
WhichRESOURCES
are used
ManagedChange ManagedChange
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
SeniorManagement and key players only
SeniorManagement and 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
/ConversionImplementation
/Conversion
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Integrated Processes for The 21st CenturyIntegrated Processes for The 21st Century
Project ManagementProject Management
ConcurrentEngineeringConcurrentEngineering
Total QualityManagementTotal QualityManagement
RiskManagement
RiskManagement
ChangeManagement
ChangeManagement
