Project Planning

MOST MANAGERS DO NOT LIKE PLANNING DUE

TO THE FOLLOWING:
* It takes time.
* They have to think.
* It involves paper work.
* They 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
• If the task is well understood
prior to being performed,
much of the work can be
preplanned.
 Planning Fundamentals
• 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.
 Reasons for Planning
• 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 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?
The Line Manager(s) ?
The Project Manager ?
Both Parties ?
 Project Manager’s Responsibility

• Project Manager will define:

– Goals and objectives
– Major milestones
– Requirements
– Rules and assumptions
– Time, cost, and performance constraints
– Operating procedures
– Administrative policy
– Reporting requirements
 Line 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
Senior Management’s 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
customer’s senior management
Planning/Scheduling Tools
 Defining Requirements
• The statement of work (SOW)
• The project specifications
• The milestone schedule
• The work breakdown structure (WBS)
• Stakeholder Analysis
 Statement of Work (SOW)
• The statement of work (SOW) is a
narrative description of the work to
be accomplished.
 WHO PREPARES THE STATEMENT-OF-WORK (SOW)

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
• PREPARATION OF A STATEMENT OF WORK REQUIRES
TRAINING RATHER THAN LUCK.
 Statement of Work Elements
• General scope of the work
• Objectives and related background
• Contractor’s tasks with its specifications
• Contractor end-item performance
requirements
• Reference to related studies,
documentation, and specifications
• Support equipment for contract end-item
Statement of Work Elements

• Customer- Supplied property,

facilities, equipment, and services
• Customer- Supplied documentation
 STATEMENT-OF-WORK RISKS

IF A STATEMENT OF WORK IS
MISINTERPRETED, IS IT NORMALLY IN
FAVOR OF THE CLIENT OR
CONTRACTOR ?
 Project Specifications
• A Specification list as shown below is
separately identified or called out as
part of the SOW.
• Specifications are used for man-hour,
equipment, and material estimates.
• Small changes in a specifications can
cause large cost overrun
 Specification for SOW
Description Specification Number
Civil 100 (index)
Concrete 101
Field Equipment 102
Piling 121
Roofing and Siding 122
Soil Testing 123
Structural Design 124
HVAC 200 (index)
Hazardous Environment 201
Insulation 202
Refrigeration piping 210
 Milestone Schedule
• Project Milestone schedule contain
such information as:
– Project Start Date
– Project End Date
– Other Major Milestone
– Schedule for Data Items (Deliverables
or Reports)
 Work Breakdown Structure
• In planning a project, the project
manager must structure the work into
small elements that are
– Manageable, in that specific authority and
responsibility can be assigned
– Measurable in terms of progress
 Work Breakdown Structure
• WBS is a project-oriented family tree
subdivision of the hardware, services,
and data required to produce the end
product
• WBS is structured in accordance with
the way the work will be performed
 PURPOSE OF WBS

The WBS is the single most important element because

it provides a common framework from which
• 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
• Schedules and status-reporting procedures can
be established.
• Time, cost, and performance can be tracked.
 Work Breakdown 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
WORK BREAKDOWN STRUCTURE (WBS)

LEVEL DESCRIPTION
1 Total Program
2 Project(s)
3 Task(s)
4 Subtask(s)
5 Work Package(s)
6 Level of Effort
THE WBS BREAKS WORK DOWN INTO SMALLER ACTIVITIES
THUS REDUCING THE RISK THAT ANY ITEM WILL BE
OMITTED

WBS: SIX-LEVEL STRUCTURE

LEVELS RESPONSIBILITY

1 Usually specified by the client and

2 managed by the project manager.
3
4 Generated by contractor for in-house
5 control
6
 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
 DEVELOPING A WORK BREAKDOWN STRUCTURE (WBS)

UTILITY CAR (1.00.00)

PROTOTYPE ADVANCED PRE- FINAL

DEVELOPMENT DEVELOPMENT PRODUCTION PRODUCTION
(1.1.0) (1.2.0) QUALIFICATION (1.4.0)
(1.3.0)
 WBS Example
WBS LEVELS

1 PROGRAM 1.00.00
1.00.00

2 PROJECT 1.1.0
1.1.0 1.2.0
1.2.0 1.3.0
1.3.0 1.4.0
1.4.0

3 TASK 1.2.1
1.2.1 1.2.2
1.2.2 1.2.3
1.2.3

4 SUBTASK 1.2.2.1
1.2.2.1 1.2.2.2
1.2.2.2 1.2.2.3
1.2.2.3

5 WORK 1.2.2.1.1
1.2.2.1.1 1.2.2.1.2
1.2.2.1.2 1.2.2.1.3
1.2.2.1.3 1.2.2.1.4
1.2.2.1.4
PACKAGE
 WBS Work Packages
• Represents units of work at the level
where the work is performed
• Contains clearly defined start and
end dates that are representative of
physical accomplishment
• Specifies a budget in terms of
dollars, man-hours, or other
measurable units
 The Project Kickoff Meeting
• This is the meeting where project
initiation take place
• In this meeting, all concerned parties
are informed of their role in the project
 Reasons Why Plans Fail
• Corporate goals not understood lower
down in the organization/company
• Plans include 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
• No one knows the major milestone dates
• Project estimates are best guesses and are
not based on any standards, or history
• No one checked if the personnel is
available with the necessary skills
• People not working towards the same
specs
• Change of management and their
objectives.
 Stopping Projects
• Final achievement of the objectives
• Poor initial planning and market
forecast
• A better alternative is found
• A change in the company interest
and strategy
• Allocated time is exceeded
• Key people leave the organization
• Problem too complex for the
resources available
 Behavioral Stoppages
• Poor morale
• Poor human relations
• Poor labor productivity
• No commitment by those involved in
the project
 Planned Closure
• Transferring responsibility
• Completion of project records
– Historic reports
– Post project analysis
• Documenting results to reflect “as
built” product or installation
• Acceptance by sponsor/user
• Satisfying contractual requirements
 Planned Closure (Continued)
• 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
Managing Scope Changes
 Change Management
• YOU CANNOT MANAGE YOUR CUSTOMER
WITHOUT MANAGEMENT OF YOUR PROJECT
MANAGEMENT PROCESS.

• WHEN YOUR CUSTOMER INITIATES A CHANGE

REQUEST, YOU MUST BE ABLE TO PREDICT
IMMEDIATELY THE IMPACT ON SCHEDULE , COST
AND TECHNICAL PERFORMANCE.
 Cost of Corrections

Preliminary Detailed
Definition Planning Planning Execution Implementation
/Conversion

$1 $5 $25 $100 $1000