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Chapter 6 Planning

PROJECT PLANNING, INTEGRATION AND EXECUTION

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Planning Planning in general and its main components Important considerations to Identify Strategic Project Variables Life Cycle Phases The Nature and Importance of Proposals for future work Participants Roles in planning The Role of quantitative and qualitative tools of Project Planning Designing Statement of Work Understanding Project Specifications Considerations for Milestone Schedules The Nature and Rationale of Work Breakdown Structure WBS Decomposition Problems

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Role of the Executive in Project Selection and Planning Understanding Planning Cycle The need of Work Planning Authorization The Reasons behind Project Stoppage or Failure Handling of Project Phase-Outs and Transfers Scheduling of Activities Preparing Master Production Scheduling Developing Program Plan Essentials of Project Planning What is Project Charter and Management Control The Need of Project Manager and Line Manger Interface The Concept of Fast Tracking Understating the nature of Configuration Management and Procedural Documentation Already Established Practices, Policies and Procedures for Projects

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.

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.

Planning Fundamentals
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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.

Reasons for Planning


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To eliminate or reduce uncertainty To improve efficiency of the operation To obtain a better understanding of the objectives To provide a basis for monitoring and controlling work

Planning in general and its main components


ElementsofProjectPlanning y Project planning means the following three things:

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Refining the project objectives defined during project initiation and collecting requirements based on the stakeholder needs and expectations. Determining the scope of the project. Determining the course of action required to attain these objectives, which involves breaking down the scope and objectives into concrete, manageable tasks.

the project management plan can be either a summary or a collection of subsidiary plans and components, which might include the following:

Standard plans from different aspects of project planning, such as the cost management plan, communication management plan, scope management plan, and risk management plan. Other components, such as the milestones list, the resource calendar, and baselines for scope, schedule, cost, and quality. A baseline is a reference plan against which all the performance deviations are measured. This reference plan can be the original or the updated plan.

Important considerations to Identify Strategic Project Variables (Parameters):


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There are some significant factors in projects and project management that vary their values throughout the project lifecycle. You must keep your eyes on these variables from the very beginning of the project: Costandnumberofteammembers(staff).Lowinthebeginning,maximum whenthe project is being executed, with a rapid drop when the project draws to a close. Abilitytoinfluencethecharacteristicsoftheprojectproductwithout significantlychangingthecost.Highestinthebeginningandgraduallydecreases astheprojectprogresses. Riskandstakeholderinfluences.Highestinthebeginninganddecreasesasthe project progresses. This is true about uncertainty, too, as risks arise from uncertainty.

Project Variable

Variables For Project Success


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Predicting project success is one of the most difficult tasks facing the project manager. According to Kerzner - most project managers look only at time, cost and performance. These parameters do not necessary identify whether or not the project was successfully managed although the deliverable was achieved. Internal project success is often measured by the actionsof three groups: - the project manager and team - the parent organization - the client organization

Life Cycle Phases

DEFINITION OF A PROJECT LIFE CYCLE


CONCEPTUAL FEASIBILITY AND PHASE PRELIMINARY PLANNING PHASE DETAILED PLANNING PHASE IMPLEMENTATION PHASE CONVERSION OR TERMINATION PHASE

RESOURCES

PMO

TIME

PMO

Resources Utilized

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? TheLineManager(s)? TheProjectManager? BothParties?

The Nature and Importance of Proposals for future work


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A term such as proposal is used when multiple factors are considered, such as cost, Technical skills, and technical approach.

Bids and quotations are typically used to ask for prices, whereas proposals are used to ask for solutions. Invitations for bid, requests for quotation, and requests for proposal travel from buyer to seller, whereas bids, quotations, and proposals travel from seller to buyer.

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Proposalevaluationtechniques.Differenttechniquescanbeusedto evaluateresponsesfrom sellers. All these techniques can use expert judgment and evaluation criteria. The common factors that can be considered in the evaluation include the following: Price.Thiscanplayaprimaryroleintheselectionofoff-the-shelf standarditems. However, you should consider that the lower price does not mean lower cost if the seller does not deliver on time. Multipleaspects.Proposalsareusually evaluatedfordifferentaspects,suchastechnical and commercial. Technical refers to the overall approach, whereas commercial refers to the cost. Multiplesources.Forproductscriticaltotheproject,multiplesources (sellers) might be required. This redundancy will help mitigate such risks as failure to meet the delivery schedule or quality requirements.

Participants Roles in planning

The Role of quantitative and qualitative tools of Project Planning


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Quantitative risk analysis is generally performed on risks that have been prioritized by using the qualitative risk analysis. However, depending upon the experience of the team and their familiarity with the risk, it is possible to skip the qualitative risk analysis and, after the risk identification, move directly to the quantitative risk analysis. The quantitative risk analysis has three major goals: Assess the probabilities of achieving specific project objectives Quantify the effect of the risks on the overall project objectives Prioritize risks by their contributions to the overall project risk

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Because qualitative analysis is an estimate, it is less precise than quantitative analysis, which is based on numbers and hence is more precise. However, qualitative analysis is quick and cheaper. It gives you some feel about the risks, and then you can determine which risks needs to be analyzed further by using quantitative analysis. Projectscopestatement. Riskmanagementplan. Riskregister Organizationalprocessassets

Defining Requirements
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The statement of work (SOW) The project specifications The milestone schedule The work breakdown structure (WBS)

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)

POINTS TO ADDRESS WHEN DEVELOPING A STATEMENT-OF-WORK


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Purpose - objectives Exclusions - what should not be done Quantities - how many Schedule - when the work will be started/completed Deliverables (i.e... work done) Acceptance criteria - what method will be used to accept deliverables Responsibility - department, office or person responsible

WHO PREPARES THE STATEMENT-OF-WORK (SOW)


PreparationofinternalSOWs
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Project office and/or user groups

PreparationofexternalSOWs
Dependent on situation, & complexity y Project manager/ line managers and project sponsor y Client who may have the capabilities y Client may decide to contract out to an independent body y Client may contract your services PREPARATIONOFASTATEMENTOFWORK REQUIRESTRAININGRATHERTHANLUCK.
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STATEMENT-OF-WORK RISKS IFASTATEMENTOFWORKIS MISINTERPRETED,ISIT NORMALLYINFAVOROF THECLIENTOR CONTRACTOR?

Statement of Work Elements


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General scope of the work Objectives and related background Contractors tasks Contractor end-item performance requirements Reference to related studies, documentation, and specifications Data items (documentation) Support equipment for contract end-item

Statement of Work Elements


(Continued)
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Customer-furnished property, facilities, equipment, and services Customer-furnished documentation Schedule of performance Exhibits, attachments, and appendices

PURPOSE OF WBS
IT IS TO STRUCTURE AN ASSIGNED PROJECT INTO VARIOUS ACTIVITIES IN ORDER THAT:
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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

WORK BREAKDOWN STRUCTURE


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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)


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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.

Work Breakdown Structure (WBS) (Continued)


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Network construction and control planning can be initiated. The responsibility assignments for each element can be established.

IN SETTING UP A WORK BREAKDOWN STRUCTURE THE ACTIVITIES MUST:


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Have clearly defined start dates Have clearly defined end dates Must 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

WORK BREAKDOWN STRUCTURE (WBS)


LEVEL
1 2 3 4 5 6

DESCRIPTION
Total Program Project(s) Task(s) Subtask(s) Work Package(s) Level of Effort

Most common type: Six-Level Indentured Structure

WBS Tasks
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Have clearly defined start and end dates Be usable as a communications tool in which results can be compared with expectations Be estimate on a total time duration, not when the task must start or end Be structured so that a minimum of project office control and documentation (i.e., forms) is necessary

DEVELOPING A WORK BREAKDOWN STRUCTURE (WBS)


UTILITY CAR (1.00.00)

PROTOTYPE DEVELOPMENT (1.1.0)

ADVANCED DEVELOPMENT (1.2.0)

PREPRODUCTION QUALIFICATION (1.3.0)

FINAL PRODUCTION (1.4.0)

WBS Controls
SCHEDULES SCHEDULES DECISION DECISION TREES TREES

MGT. MGT. COORDIN. COORDIN.

WORK WORK BREAKDOWN BREAKDOWN STRUCTURE STRUCTURE

ORGANIZ. ORGANIZ. CHARTS CHARTS

ACCOUNTACCOUNTABILITY ABILITY

COSTS COSTS

WBS Interfacing Benefits


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The responsibility assignment matrix Network scheduling Costing Risk analysis Organizational structure Coordination of objectives Control (including contract administration)

Work Package Control Point


WBS

FUNCTIONAL ORGANIZATION

WORK PACKAGES

WBS Work Packages


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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.

WBS Packages (Continued)


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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

Understanding Project Specifications


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performance measurement baseline. An approved integrated plan for the project specifying some parameters to be included in the performance measurements, such as scope, schedule, and cost. The performance of the project is measured against this baseline. Some technical and quality parameters can also become part of this baseline.

Considerations for Milestone Schedules


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Milestoneschedulesomekindofhigh-level scheduleincludedinthecharter. Milestone chart.Thesearetypicallythebarcharts representingonlythemilestones, not all the schedule activities.

Role of the Executive in Project Selection and Planning

Project Managers Responsibility


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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

Line Managers Responsibility


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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

Senior Managements Responsibility


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Senior management (project sponsor) will:


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

Understanding Planning Cycle


Planning.Inthisstage,you,theprojectmanager,alongwiththeprojectmanagement team,refine the project objectives and requirements and develop the project management plan, which is a collection of several plans that constitute a course of actions required to achieve the objectives and meet the requirements of the project. The project scope is finalized with the project scope statement. The project management plan, the outcome of this stage, contains subsidiary plans, such as a project scope management plan, a schedule management plan, and a quality management plan. The processes used to perform this stage fall into a group called the planning process group.

The need of Work Planning Authorization


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Work authorization system of the organization, because the project needs to be authorized

The Reasons behind Project Stoppage or Failure

REASONS WHY PLANS FAIL


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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

OTHER REASONS WHY PLANS FAIL


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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

Stopping Projects
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Final achievement of the objectives Poor initial planning and market prognosis A better alternative is found A change in the company interest and strategy Allocated time is exceeded Key people leave the organization Personal whims of management Problem too complex for the resources available

Behavioral Stoppages
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Poor morale Poor human relations Poor labor productivity No commitment by those involved in the project

Handling of Project Phase-Outs and Transfers

Ways to Terminate
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Orderly planned termination The hatchet (withdrawal of funds and removal of personnel) Reassignment of people to higher priority efforts Redirection of efforts toward different objectives Burying it or letting it die on the vine (i.e., not taking any official action)

Termination Problem Areas


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Worker morale Reassignment of personnel Adequate documentation and wrap-up

Planning For Project Completion

Planned Closure
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Transferring responsibility Completion of project records


Historic reports Post project analysis

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Documenting results to reflect as built product or installation Acceptance by sponsor/user Satisfying contractual requirements

Planned Closure (Continued)


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Releasing resources
Reassignment of project office team members Disposition of functional personnel Disposition of materials

Closing out work orders (financial closeout) Preparing for financial payments

Scheduling of Activities
Recall that you used the decomposition technique to create the WBS by subdividing the project deliverables into smaller manageable tasks called work packages. Decomposition is also used in the activity definition process for subdividing the work packages into smaller, more manageable components called schedule activities.

Preparing Master Production Scheduling

Developing Program Plan

Essentials of Project Planning

What is Project Charter and Management Control


projectcharter.Adocumentthatstatestheinitialrequirementstosatisfythestakeholders needs and expectations and also formally authorizes the project. The output of the Develop Project Charter process is a formal document called the project charter. It is a high-level document that summarizes the business needs, the understanding of customer requirements and needs, and how the new product or service will satisfy these requirements. To be specific, the project charter should include the following information :
1. 2. 3. 4. 5. 6. 7. 8. 9.

Theprojectjustification Ahigh-levelprojectdescription High-levelprojectrequirements Projectobjectivesandsuccesscriteria, High-levelrisks, Milestoneschedule Projectapprovalandacceptancerequirements, Anassignedprojectmanager, Projectsponsor

The Need of Project Manager and Line Manger Interface

Schedule Compression
Schedule compression is an attempt to shorten the project schedule without changing the project scope. Crashing.Thisisaprojectschedulecompressiontechniqueinwhichcostandschedule tradeoffsare analyzed to decrease the project duration with minimal additional cost. A number of alternatives are analyzed, including the assignment of additional resources. Approving overtime is another example of crashing. Fast tracking.This is a project schedule compression technique used to decrease the Fasttracking.This projectduration by performing project phases or some schedule activities within a phase in parallel that would normally be performed in sequence. For example, testing of a product can start when some of its components are finished, rather than waiting for the whole product to be completed.

The Concept of Fast Tracking


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fasttracking.Aprojectschedulecompression techniqueusedtodecreasetheproject duration by performing project phases or some schedule activities within a phase simultaneously, when they would normally be performed in sequence.

Updating The Project Diary

configuration management.

Refers to controlling the characteristics of a product, a service, or a result of a project. It includes documenting the features of a product or a service, controlling and documenting changes to the features, and providing support for auditing the products for conformance to requirements.