LECTURE 4

Project Planning

Introduction

The most important responsibilities of a project manager are planning, integrating and executing plans

Planning: Selecting the company objectives and establishing the policies, procedures and programs necessary

The project manager is the key to successful project planning

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Introduction

Project planning is determining what need to be done, by whom and by when

Project planning must be systematic, flexible and disciplined (thru reviews & control)

Project planning is an iterative and continuous process and must performed throughout the life of the project

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Reasons for project planning

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1. To eliminate or reduce uncertainty

2. To improve efficiency of the operation

3. To obtain a better understanding of the objectives

4. To provide a basis for monitoring and controlling work

Steps for Project Planning

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Project Objectives

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Project objectives must be known to all project personnel and all managers, at all level of company

SMART rules:

SpecificS

MeasurableM

AttainableA

Realistic or RelevantR

Tangible or TimeboundT

Project Planning and Control System

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Planning activities

Monitoring activities

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?

Planning questions often asked

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Project Managers Responsibility

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 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

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Senior Managements Responsibility

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

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Problems with developing Objectives

Project objectives are not agreeable to all party

Project objectives are too rigid to change

Unsufficient time to define objectives well

Objectives are not adequately quantified

Objectives are not documented well enough

Personnel turnover is high

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Information needed at project initiation

The statement of work - SOW

Narrative description of work to be accomplished Objectives, brief description of work, schedule

The project specifications

Statement of work Man-hour, equipment, materlals

The Milestone schedule

Start date, end date Other milestones: review meeitngs, procurement, testing

The Work Breakdown Structure

Structure the work into smaller elements It can be manageable, independent, integratable and measurable

Planning /Scheduling tools

Statement of Work - SOW

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Points to Address When Developing a Statement-Of-Work

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

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Statement of Work Elements

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

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Customer-furnished property, facilities, equipment, and services

Customer-furnished documentation

Schedule of performance

Exhibits, attachments, and appendices

(Continued)

Statement of Work Elements

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Work Breakdown Structure - WBS

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WBS: A product- oriented family tree which shows a subdivision of effort required to achieve an objective; for example a program, project, and contract

A Work Breakdown Structure (WBS) defines the work to be completed in a project.

The WBS is the basis for time estimating, resource allocation, and cost estimating and collection.

WBS is the tool for breaking down a project into its component parts most important techniques used in project management

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:

PURPOSE OF WBS

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Work Breakdown Structure - WBS

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Six-level structure

Level Description

Managerial Levels

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Total programProject

Task

TechnicalLevels

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SubtaskWork package

Level of effort

Most common type: Six-Level Indentured Structure

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

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Network construction and control planning can be initiated.

The responsibility assignments for each element can be established.

Work Breakdown Structure - WBS

(Continued)

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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

In setting up a WBS the activities must:

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WBS Tasks

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

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WBS Building House

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New Restaurant

Specification of needs

Conduct surveyStudy competition

Possible foodPossible service

Product design

Menu designCold dishes

Warm dishes

Service designServing styleDinning room

PurchasingKitchen equipment

FixtureFurniture

PerishablesStaples

Process designCold dishes

Warm dishesOutside food

AdvertisingOn campusOff campus

Local preparationConstruction

ElectricityPlumbing

Equip. installationFurniture

Start upPreparation

Pilot runAnalysis

Labor force

ServiceReqts

Training

CleaningReqts

Training

KitchenReqts

TrainingManagementAll functions

Coordination withUniversity

WBS for Restaurant

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WBS Controls

WORKBREAKDOWNSTRUCTURE

MGT.COORDIN.

ORGANIZ.CHARTS

COSTSACCOUNT-ABILITY

DECISIONTREES

SCHEDULES

`

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WBS for objective control and evalution

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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

REASONS WHY PLANS FAIL

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Classroom Activity 4a

What planning steps should precede total program scheduling? What steps are necessary?

Create a WBS for your current project.

Why should the entire project team be involved in creating the WBS?

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Questions?