modul pmf - project planning

Project Planning

MODULE

3 Copyright Prosys Solutions International All rights Reserved

MODULE 3 Project Planning Prosys Solutions Intl

Project Management Plan Project Charter

A description of the PM approach or strategy

Work Breakdown Structure (WBS)

Cost estimates, Schedule, Responsibility

Assignments (each task if necessary)

Performance measurement baseline (scope,

schedule, cost)

Major milestone

Key staff

Risk Management Plan

Scope Management Plan

Quality Management Plan

Cost Management Plan

Schedule Management Plan

Staffing Management Plan

Communication Management Plan Risk Response Plan

Procurement Management Plan

Change Management Plan

Configuration Management

Plan

Requirements Management Plan


Remember that project scope product scope Project scope

Work performed to deliver the product, service, or result with the specified features and/or functions

May include product scope Measured against Project Management Plan

Product scope Features and functions characterizing the product, service,

or result Measured against product requirements

Project Scope & Product Scope


Scope Management Plan includes processes for: Preparing a detailed project scope

statement Enabling the creation of WBS from

the detailed project scope statement

Establishing how the WBS will be maintained and approved

Specifying how formal acceptance of the completed project deliverables will be obtained

Controlling how requests for changes to detailed project scope statement will be processed

Planning Scope Management Requirements Management Plan

Component of the project management plan that describes how requirements will be analyzed, documented, and managed

How requirements activities will be planned, tracked, reported

Configuration management activities

Requirements prioritisation process Product metrics that will be used

and the rationale for using them Traceability structure to reflect

which requirement attributes will be captured on the traceability matrix


Scope Definition

Description What should be done? Key Deliverable of the project.

Function: as a Documented basis in making project decisions

Scope Statement

Product scope description

Acceptance criteria

Project deliverables

Project exclusions

Project constraints

Project assumptions

Results in Scope Statement, which contains many details concerning project and product deliverables, as one of many basis used to keep the project on track Dont forget to Identify the service coverage for: Preparation & Resource Mobilization Technical Solution & Infrastructure Management of Change Communication & Socialization Start-up System and Commissioning Project Hand-over



Creating WBS involves subdividing project deliverables and project work into smaller,

more manageable components. WBS provides a structured vision of what has to be delivered

deliverable-oriented hierarchical decomposition of the total scope of work to be

carried out by project team to accomplish project objectives and create required

deliverables

Work not included in WBS is not within project scope


Scope Baseline

The approved version of scope statement, WBS, and its associated WBS dictionary, that can be changed only through formal change control procedures and is used as a basis for comparison original plan + approved changes

Project Scope Statement WBS WBS dictionary (document

providing detailed deliverable, activity, & scheduling information about each WBS component)


WBS Level 1

WBS Level 2 WBS Level 2 WBS Level 2

WBS Level 3 WBS Level 3


Work Package

Work Package

Work Package

Division & subdivision of project scope & project deliverables into smaller, more manageable components until the work and deliverables are defined to the work package level

Decomposition

Work Package is the lowest level in the WBS, and is the point at which the cost and schedule for the work can be reliably estimated.


Planning Project Schedule

Define tasks and activities to be

carried out by each phase

Define the milestones &

deliverables; sequencing the

activities and tasks

Estimate duration of activities,

tasks and phases

Refine the plan

Create schedule

Refine/Tune Schedule


Defining activities: identifying and documenting specific actions to be performed to produce project deliverables Scope definition vs. Activity definition Activity definition: decomposition

up to activity level Scope definition: decomposition up

to deliverables level

Rolling Wave Planning: iterative planning technique in which the work to be accomplished in the near term is planned in detail, while future work is planned at a higher level of the WBS As more is known about the upcoming events, work packages can be decomposed into more detailed activities


PDM ADM Mostly represented by Activity-on-Node (AoN)

Represented by Activity-on-Arrow (AoA)

4 relationships: Finish to start Start to finish Start to start Finish to finish

1 relationship: Finish to start

Does not use dummy May use dummy activity (does not require work or time) to show task dependencies

Activity sequencing

Activity sequencing: Identifying and documenting relationships among the project activities May use diagrams, such as PDM and ADM


Precedence Diagramming Method (PDM) Network Diagram

Activity Name 1

Duration (D)

ES EF

LS LF

Activity Name 2

Duration (D)

ES EF

LS LF LS : Latest Start LF : Latest Finish

ES : Earliest Start EF : Earliest Finish

121 Initial Design 10 days

A120 Draft Drawing 20 days

A130 Run Simulation 15 days

A140 Final Design 10 days

Example


Begin

A B

C D E

H F G End

I

K L

J

Precedence Diagramming Method (PDM)

12 activities, 23 logic diagrams

Sequence Activities


Arrow Diagramming Method (ADM) Network Diagram

A 10

Example

Node 1

Node 2

Activity

Duration

Node 1

Node 2

Dummy

No duration

A 20

Initial design

10 days

A 30

A 40

A 50

Draft drawing

20 days

15 days

Simulation

A 60

Final design

10 days


Precedence Relationship Types

Activity A FS

Activity B

Activity A SS

Activity B

Activity A FF

Activity B

Activity A

SF Activity B

Finish to Start

Start to Start

Finish to Finish

Start to Finish

Network Diagram


Leads and Lags

Leads A

B FS 5 days

Lags A

B FS + 5 days

Network Diagram


Precedence Calculation Sequence Activities

Forward Calculation

Backward Calculation


Critical Path Identification and Float Sequence Activities

Activity No.

Duration (Day)

Early Late Total FLOAT

(TF) Start (ES) Finish (EF) Start (LS) Finish (LF)

A10 2 1 2 1 2 0

A20 3 3 5 5 7 2

A30 1 6 6 8 8 2

A40 4 3 6 3 6 0

A50 2 7 8 7 8 0

A60 5 9 13 9 13 0

Total FLOAT (TF) = (LS) - (ES) = (LF) - (EF)

Total FLOAT = 0 (Critical Path)


Dependency Determination Sequence Activities

Mandatory Dependency (Hard Logic)

Discretionary Dependency (Soft Logic)

External Dependency


Activity duration estimation: estimating the number of work periods needed to complete individual schedule activities with estimated resources Expert Judgment Analogous Estimating Parametric Estimating Reserve Analysis Group Decision-Making Techniques Three-Point Estimating

Duration Estimation Techniques


Develop Schedule

Schedule baseline The approved time phased plan (for a project, a work breakdown structure component, a work package, or a schedule activity)

Define task list from each work package

Estimate the duration for each defined task

Do Network Planning to show interdependency among tasks

Create project schedule baseline and milestones


Tuning Schedule

Schedule Compression

Fast Tracking Compressing Project Schedule (phases normally done

in sequence performed in parallel , at least partially)

Higher probability of rework Usually increases risk

Crashing Usually increases cost Taking action to decrease project duration

Increase productivity Move resources from non-critical tasks or adding resources

Work overtime Reduce the scope of work (if possible)

Subcontracting part of the work


Workgroup Session: Project scheduling


Cost Estimation Developing an approximation of the cost

of resources needed to complete project activities

Identifying and considering various costing alternatives

Also considering cost tradeoffs & risks, such as: o Make or buy o Buy or lease o Resource sharing to achieve optimal

costs for project Cost Risk: who has the cost risk in a type

of contract (buyer or seller) described in risk management

Cost Estimating is different with Pricing (when project is performed under contract)


Project Cost Direct Cost Direct Material Direct Labor Cost

Indirect Cost Supervisory Cost Construction Equipment/Tools

Overhead Cost Fringe benefits Office and its facilities

Variable Cost Cost that changes with the amount of work Cost of material, supplies, wages

Fixed Cost Cost that does not change as production changes

Sunk Cost Cost that has been invested into or expended upon the project


Cost Estimating Techniques

Analogous estimating Using the actual cost of previous, similar

projects as the cost estimation basis.

Parametric estimating Using a statistical relationship between

historical data and other variables (e.g. square footage in construction, lines of code in software

development, required labor hours)

Bottom-up estimating Estimating the cost of individual work packages then summarized or rolled up to higher levels

Three-point estimating Considering estimation uncertainty & risk,

using three estimates to define approximate activity cost range


Cost Budgeting Allocating overall cost estimates to individual activities or work packages to establish cost baseline for measuring project performance

Some questions to ask: Is it expensive ? Is it a high volume item ? Is it complex or difficult to construct? Is there duplication ? Is there spare capacity ? Does it require special skills ? High maintenance & operation costs? Does it use obsolete materials ? Is the design rushed ?

Project budget includes all funds authorized to execute the project Cost baseline == approved time-phased project budget, excluding management reserves


Expenditures

Cost baseline

Funding requirements

Time

Cum

ulat

ive

Cost

s

The difference between the maximum funding and the end of the cost baseline is Management Reserve

Cash Flow, Cost Baseline and Funding Display


Workgroup Session: Develop Project Schedule & Cost Estimation


Project Quality Management


Quality Assurance

Quality Control

Quality Management Concerns

Customer satisfaction Prevention over Inspection Continuous improvement Management responsibility Cost of Quality (CoQ)


Quality Grade The degree to which a set of inherent

characteristic fulfill requirements (ISO 9000)

Delivered performance/result

LOW QUALITY is a problem

Category assigned to deliverables having the same functional use but different technical characteristics Design intent LOW GRADE is not necessarily problem



Describing how the organisations quality policies will be implemented, and how project management team plans to meet the quality requirements set for the project

Project quality system: organizational structure, responsibilities, procedures, process, and resources needed to implement quality management

Quality management plan must address QC, QA, and quality improvement for the project

May contain: Deliverables & milestones Quality requirements Standards for monitoring &

controlling Process review Major check points Inspections & acceptance criteria


CoQ refers to total cost of conformance work and nonconformance work that should be done as a compensatory effort May be incurred throughout the deliverables life-cycle

Post-project CoQ may be incurred because of Product return Warranty claim Product recall Errata

Cost of conformance Cost of nonconformance

Money spent during project to avoid failures

Money spent during & after project because of failures

Prevention costs (build a quality product) training, document processes, equipment, time to do it right

Appraisal costs (assess the quality) testing, destructive testing loss, inspections, quality audits

Internal failure costs (found by project) rework, scrap, repair

External failure costs (failures found by customer) liabilities, warranty work, business loss, legal issues


Project Human Resource Management the processes that organize and manage the project team.

Project Management Team

is a subset of the project team and is

responsible for project management activities

such as planning, controlling, and closing.

Project Team:

is comprised of the people who have

assigned roles and responsibilities for

completing the project.


Form of Project Organization

Project Organization Charts:

Functional Organization

Projectized Organization

Weak Matrix Organization

Balanced Matrix Organization

Strong Matrix Organization

Composite Matrix Organization

Organization chart & position description forms:

Hierarchical type charts Graphical, top-down format

Matrix-based charts e.g.: Responsibility Assignment

Matrix

Text-oriented formats e.g.: Position description document,

role-responsibility-authority form


Functional Organization

Project Coordination

Staff Staff engaged in project activities on part time basis under coordination of each functional manager

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

Chief Executive


Projectized Organization


Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Chief Executive

Staff Staff engaged in project activities On full time basis under full direction of project mgr.

PROJECT MANAGER

PROJECT MANAGER

PROJECT MANAGER

PROJECT MANAGER


Weak Matrix Organization


Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Chief Executive

Staff Staff engaged in project activities On part time under stronger influence by Functional manager

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER


Balanced Matrix Organization

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Project Manager

Chief Executive

Project Coordination Staff Staff engaged in project activities sharing time and effort on equal basis

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER


Strong Matrix Organization

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Project Manager

Project Manager

Project Manager


Chief Executive

Manager of Project Managers

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

Staff

Staff engaged in project activities With 60-90% time effort under coordination Of designated project manager


Staff

Staff engaged in project activities with help of additional staff assigned & control by functional mgr.

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Staff

Project Manager

Project Manager

Project Manager

Project B Coordination

Project A Coordination

Composite Matrix Organization

Chief Executive

Manager Of Project Managers

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER

FUNCTIONAL MANAGER


Responsibility Assignment Matrix

Responsible Accountable Inform


Project Characteristic Functional Weak Matrix Composite Matrix PROJECT

Uncertainty LOW MODERATE HIGH HIGH

Technology STANDARD STANDARD COMPLEX NEW

Complexity LOW LOW MEDIUM HIGH

Duration SHORT MEDIUM MEDIUM LONG

Size SMALL SMALL MEDIUM LARGE

Importance LOW MODERATE MODERATE HIGH

Customer DIVERSE DIVERSE 3 OR 4 ONE

Interdependency (Within) LOW MEDIUM MEDIUM HIGH

Interdependency (Between) HIGH MEDIUM MEDIUM LOW

Time Criticality LOW MODERATE MODERATE HIGH

Key Factors of Determining Project Organization Form

Adapted from: Robert Youker.Organizational Alternatives For Project Management, Project Management Quarterly, Drexel Hill, Pa.8(1), March 1977, p.21.


Workgroup Session: Develop Responsibility Assignment Matrix (RAM)


Human Resource

Plan

Provides guidance on how project human resources should be defined, staffed, managed, controlled, and eventually released

Roles and responsibilities Role Authority Responsibility competency

Project organization charts Staffing management plan

Staff acquisition Resource calendars Staff release plan Training needs Recognition and rewards Compliance Safety


Project Organization Sample for Complex Project


Project Communication Management

Define documentation standards Setup project file Stakeholder analysis

Choose project management tools

Define reporting & meeting procedures

Define monitoring and reporting metrics


Communication Management Plan

Stakeholder communication requirements Information to be communicated Reason for information distribution Time frame & frequency for the distribution of required information & receipt of

acknowledgment or response Person responsible for communicating the information Person responsible for authorising confidential information release Information receiver Methods/technologies used to convey the information Allocated resources for communication activities Escalation process identifying time frames & management chain for escalation of issues

that cannot be resolved at lower staff level Method for updating & refining communications management plan as the project

progresses & develops Glossary of common terminology Flow charts of project information flow, workflows with possible sequence of

authorisation, report list, meeting plans, etc Communication constraints (usually derived from specific legislation or regulation,

technology, organisational policies, etc)


The Plan..

.. documents how you will manage and control communications Since communications are complex, the communications

management plan should be in writing in order to be understood by all project team members and stakeholders.

As with other management plans, the communications management plan becomes part of the project management plan


Stakeholder management planning will identify how the project will affect stakeholders, allowing: Development of various ways to

effectively engage stakeholders Manage stakeholders

expectations Ultimately achieve project

objectives

Stakeholder management Create & maintain relationships

between and among project team & stakeholders

Aims to satisfy the needs & requirements within project boundaries

Stakeholder Management Planning


Desired & current engagement levels of key stakeholders

Scope & impact of change to stakeholders

Identified interrelationships & potential overlap between stakeholders

Stakeholder communication requirements for current project phase

Information to be distributed to stakeholders, including language, format, content, and level of detail

Reason for the distribution of that information & the expected impact to stakeholder engagement

Time frame & frequency for the distribution of required information to stakeholders

Method for updating & refining stakeholder management plan

Stakeholder Management

Plan


Workgroup Session: RAM, Communication planning, Stakeholder

management


An uncertain event or condition that, if it

occurs, has a positive or negative effect on a

projects objectives

Project Risk

Impact to: Scope

Quality

Cost

Schedule

Uncertainty:

Known (Open)

Known Unknown (Blind or Hidden)

Unknown Unknown



Describes how risk management will be structured and performed on the

project.

It becomes the subset of Project Management Plan.


Methodology

Roles & Responsibilities

Budgeting

Timing

Risk Categories

Definitions of risk probability & impact

Probability & impact matrix

Revised stakeholders tolerances

Reporting formats

Tracking


Document in which the results of risk analysis & risk response planning are

recorded

Risk Register

List of Identified Risks Risk event Cause/root cause Effect

Assigned risk owners List of Potential Responses Control actions Risk symptoms & warning signs Residual & secondary risks Risk watch list Contingency reserves


Assess the impact and likelihood of identified risk (subjective)

Risk Analysis: Qualitative

Activities: Determine which risk events warrant a

response Determine the probability and impact Determine which risk to analyze more fully

in risk quantification or to skip risk quantification in favor to going directly to risk response planning

Document non critical or non top risk Determine the overall risk ranking for the

project


Risk Event Status = Risk Probability x Risk Impact

Risk Event Status precisely what might happen to the detriment of the project

Risk Probability how likely the event is to occur

Risk Impact the severity of the consequences

Risk Analysis: Qualitative


Numeric analysis of probability of each risk and impact on the project

Risk Analysis: Quantitative

Include: Determine which risk events warrant a

response Determine overall project risks Determine quantified probability Determine cost and schedule reserves Identify risks requiring the most attention Create realistic and achievable cost,

schedule or scope targets


Risk Rankings Evaluating Impact of a Risk on Major Project Objectives

Impact 1 2 4 8 16

Time

Insignificant schedule slippage

Delivery plan milestone

delay within

quarter

Delivery plan milestone delay of one quarter

Delivery plan milestone delay of

more than one quarter

Delivery plan milestone

delay\outside fiscal year

Cost Insignificant cost increase 20% cost increase

Scope

Scope decrease is

barely noticeable

Changes in project limits or features

with


Risk Rankings

Time, Cost, and Scope Objectives

Large Aversion to High & Very High Impacts

Probability Impact

5 5 10 20 40 80

4 4 8 16 32 64

3 3 6 12 24 48

2 2 4 8 16 32

1 1 2 4 8 16

High

15 ++

Moderate

7 14 Low 1 6 Risk Score

Translate Score to Risk Rank


Risk Probability Impact Matrix

Prob. Threats Opportunities

0,90 0,05 0,09 0,18 0,36 0,72 0,72 0,36 0,18 0,09 0,05

0,70 0,04 0,07 0,14 0,28 0,56 0,56 0,28 0,14 0,07 0,04

0,50 0,03 0,05 0,10 0,20 0,40 0,40 0,20 0,10 0,05 0,03

0,30 0,02 0,03 0,06 0,12 0,24 0,24 0,12 0,06 0,03 0,02

0,10 0,01 0,01 0,02 0,04 0,08 0,08 0,04 0,02 0,01 0,01

0,05 0,10 0,20 0,40 0,80 0,80 0,40 0,20 0,10 0,05

Each risk is rated on its probability of occurring and impact on an objective if it does occur. The organizations thresholds for low, moderate or high risks are shown in the matrix and determine whether the risk is scored as high, moderate or low for that objective


Avoid Eliminate threat or

protect the project from its impact

Transfer Shift threat impact &

response ownership to third party

Mitigate Reduce risk probability

or occurrence or impact

Accept Acknowledge & not

take action unless the risk occurs

Negative

Strategies for negative risks or threats

Passive acceptance Document the strategy, leaving the project team to deal with the risks as they occur, periodically review the threat to ensure that it doesnt significantly change

Active acceptance Usually involves establishing contingency reserve to handle the risks


Strategies for positive risks or opportunities

Exploit Eliminate uncertainty by

ensuring the opportunity happens

Enhance Increase probability

and/or the positive impacts

Share Allocate some/all

ownership to third party to benefit the project

Accept Willing to take advantage

of the opportunity but not actively pursuing it

Positive


Risk Response Strategies

Avoid Exploit

Cause-related

Transfer Share

Outsource-related

Mitigate Enhance

Probability & impact-related


Workgroup Session: Risk Analysis


Procurement Management

Update Project Plan Identify potential vendors/contractors

Assess and select shortlist vendors

Identify seller selection planning


Bid and Quotation Generally used when the source selection decision will be price driven.

Proposal

Generally used when non financial consideration such as technical skills or approach are paramount

Common names of procurement documents

IFB : Invitation for Bid RFP: Request for Proposal RFQ: Request for Quotation IFN : Invitation for Negotiation CIR : Contractor Initial Response

Procurement Documents


Types of Contract

Cost Reimbursable Cost Plus Fee (CPF) or Cost Plus Percentage of Cost (CPPC) or Cost Plus Award Fee (CPAF) Cost Plus Fixed Fee (CPFF) Cost Plus Incentive Fee (CPIF)

Cost Reimbursable

Cost Plus Fee (CPF) or Cost Plus

Percentage of Cost (CPPC) or Cost Plus

Award Fee (CPAF)

Cost Plus Fixed Fee (CPFF)

Cost Plus Incentive Fee (CPIF)

Fixed Price or Lump-Sum

Fixed Firm Price (FFP)

Fixed Price Incentive Fee (FPIF)

Fixed Price with Economic Price

Adjustments (FP-EPA)

Time and Material (T&M)


Contract types to be used

Risk management issues

Constraints & assumptions

Make-or-buy decisions, procurement matrix

Evaluation criteria

Direction for managing multiple sellers

Requirement identification for performance bonds or insurance contracts

Direction to be provided to the sellers

Form and format for procurement

Procurement documentations

Guidance to coordinate procurement with scheduling, performance reporting, and project activities

Prequalified sellers identification

Procurement metrics

Project Procurement

Plan

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modul pmf - project planning

Documents

project work

project objectives

project team

project planning module

completed project deliverables

commissioning project

total scope of work

product deliverables