Project Planning and Excution chapter 01.ppt

Dinkisa K.(PhD)
Project Planning, Scheduling and Execution
MPM-6023
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© 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted
to a publicly accessible website, in whole or in part.
Chapter one
Planning and Project Scope Planning
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Chapter Contents
 Define Project
 Scope Planning
 Work Breakdown Structure (WBS)
 Statement of Work (SOW)
 Project Deliverables
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What is a Project?
 Project
• A temporary endeavor undertaken to create a unique
product, service, or result
– —PMBOK®
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What is a Project?
 A project is an activity to create a unique product or
service, called project deliverables.
 It has a finite duration. The project is temporary. So,
routine, repeated activities would not form a project.
 Example: Building a football stadium is a project as it may
take finite number of durations (say six months to years) to
build it.
– The output of the project, the football stadium, will remain
there indefinitely.
– Maintenance of the stadium would be a routine activity
and not be categorized as a project.
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What is Project Management?
 Project management is defined as: " ..... the application
of knowledge, skills, tools and techniques to project
activities in order to meet stakeholder's needs and
expectations from a project."
 Lewis defined project management as "facilitation of the
planning, scheduling, and controlling of all activities
that must be done to meet project objectives.”
 Good project management deals with tools, people, and
systems. Tools (scope planning, work breakdown
structures, Project Evaluation Review Techniques (PERT)
scheduling, earned value analysis, risk analysis, and
scheduling software.
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PM knowledgeable area
1. Integration Management
2. Scope Management
3. Time Management
4. Cost Management
5. Quality Management
6. Human Resource Management
7. Communication Management
8. Risk Management
9. Procurement Management
10. Stakeholder Management
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Project success creteria
• On time
• Within budget
• Satisfied Stakeholders
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Project Priorities
 -
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Project Constraints:
•Time
•Cost
•Scope
•Resources (People)
•Quality
•Risk (Real world)
•(Facilities and equipment, Computer Infrastructure, Physical
Location etc.)
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The Triple Constraint
Time
(Schedule)
Cost
(Budget)
Scope (Work to be done)
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What is Project Planning?
 Planning is the process of identifying the methods,
resources and activities necessary to accomplish the
project’s objectives.
 Planning is performed in order to:
– Understand the need, problem or opportunity that the project will
address and the benefits that will deliver;
– Define what has to be accomplished and delivered,
typically stated in terms of scope, time, budgets and
quality;
 Develop a plan to deliver the project.
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Project planning
1) Scope (Work Breakdown Structure)
2) Schedule (Network Diagram)
3) Cost (Budget)
Time
cost
Scope
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Project planning
 Once a project is selected for execution, the structural project planning
approach prescribes that the project gets planned in detail prior to the
actual start of the project.
 Project planning consists of two main stages: Risk
Management and Project Scheduling.
 The goal of the risk management stage is to identify project risks
and take the necessary precautions.
 The goal of project scheduling is to make a detailed schedule of
all the tasks that need to performed, with specific time frames
and resource allocations.
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1. Risk Management
 In projects, there is always some uncertainty about the
schedule, the costs and the quality of the end product.
 Project management is to some extent risk management
which tries to systematically manage this uncertainty in
order to increase the likelihood of meeting project
objectives
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Cont’d
 Risk management deals with uncertainty, which
comes in two flavours:
– Known unknowns: Identified potential problems. One doesn’t
know exactly what will happen, but one is aware of the risks and
their potential to damage the project. One can prepare for these
risks.
– Unknown unknowns: These relate to problems that arrive
unexpectedly and cannot be anticipated. However, good project
managers still expect these to happen.
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Cont’d
 All project management activities can be considered as
managing risk,
 But the risk management process is a specific set of activities
performed consciously to identify and manage risks on the project.
 There is a difference between project risk and business
risk.
– Business risk relates to creating the right project output.
Business risk is seldom the responsibility of the project manager,
but rather of the project owner.
– Project risk relates to making sure the project produces the
promised results within budget and on time. This is the
responsibility of the project manager.
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Risk Management Framework
 A possible risk management framework consists
of 5 main steps:
1. Identify Risks: Find all the factors that threaten project
objectives ( brainstorming, interview, risk profile, estimating,
scheduling, and budgeting ). The goal is to identify only.
2. Analyse and prioritize: Assess each risk in terms of its possible
damage and likelihood of occurrence (Next, one should sort the
remaining risks in order of importance)
Three categories (from 1 to 3, representing respectively a low,
medium or high impact/probability).
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3. Develop a response: Create strategies for reducing the possible
damage and/or probability the risk will occur.
– Accept the risks. If decide to do nothing about it (when the impact or the
probability are low).
– Avoid the risk. (by selecting a lower-risk option for meeting the project goals.
– Contingency plans. When you cannot ignore, nor avoid the risk and have no
impact on the probability, you can try to reduce the negative impact and have a
fall-back plan in place when the risk becomes reality. Note that this strategy can
only be efficient if there is a way to detect the risk on time.
– Transfer the risk. This strategy typically boils down to paying for insurance.
– Mitigate the risk. This strategy tries to reduce the risk and more particularly the
probability that the risk occurs. This often implies taking extra actions.
.
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4. Establish reserves: Set aside additional funding for the project
that will be used for known risks and unknown risks.
– Once the strategies are determined, (financial) reserves must be
set aside to allow the strategies to be implemented. Such
contingency and reserve funds serve the purpose to account for
known un-knowns.
– Unknown unknowns are never accounted for by such reserves.
Instead, management reserves must be used for risks that
cannot be anticipated. Risk management only deals with
anticipated risks.
5. Continuous risk management: Implement strategies and monitor
the effects of these changes on the project
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2. Project scheduling
 A second element of the project planning stage is the
development of a detailed project schedule.
 The classical approach of project management relies heavily on
upfront planning. We first plan everything prior to execution.
 Developing a project schedule can be broken down in following
steps:
– Scope planning
– Develop a work breakdown structure.
– Identify task relationships.
– Estimate work packages.
– Calculate initial schedule.
– Assign and level resources.
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Scope planning
 Once a project is formally approved, the first step is the
detailed scope planning.
 Scope planning is a written statement which acts as the
basis for future decisions and establishes a criteria for
the completion of an activity, completion of a project
phase, or the completion of the project itself.
 Scope planning is one of the tools available for project
managers to successfully apply the tools and techniques
of modern project management to their projects.
 Forms the basis of agreement between client and
contractor by identifying both the project objectives and
major deliverables.
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Scope planning defined
 Figure 1.1: Scope Planning Process
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Work Breakdown Structure (WBS )
 A hierarchical decomposition of the project into phases,
deliverables, and work packages.
 Purpose: sub-divide the scope of work into manageable work
packages which can be estimated, planned and assigned to a
responsible person or department for completion.
 IDEA: you sub-divide a complicated task into smaller tasks, until
you reach a level that cannot be further sub-divided.
 While developing WBS we need to ask:
– What tasks must be done?
– Who will do each one?
– How long will each task take?
– What materials/supplies are required?
– How much will each task cost?
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WBS
• Breaks the large project into manageable units
• Defines the total scope of the project
• Starts with the deliverables
• Shows work packages (tasks or activities)
• Allows you to organize work to then be scheduled
• Allows you to be able to assign work to team
members and identify resources needed
• Communicates all the work that needs to be done
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Why Use a WBS?
 WBS to be the most valuable tool of project management
because:-
– The work breakdown structure identifies all the tasks/deliverables in
a project and can be set up graphically or as an textual outline. 4
– Traditionally, a WBS focussed on tasks, more recently there has been
a shift towards deliverables.
– It ties the entire project together.
– The WBS provides the basis for which resource assignments can be
made.
– WBS allows you to estimate working times for each task.
– Knowing the working time then allows you to calculate labor costs
for all work so that you develop a labor budget for the project.
– The times also provide the basis for developing a schedule.
 You can also identify material, capital equipment, and other
costs associated with each activity.
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Why Use a WBS?
 Building a WBS helps to:
– Provide a detailed illustration of project scope.
– Monitor progress. The tasks on the WBS become the basis for
monitoring progress, because each is a measurable unit of work.
– Create accurate cost and schedule estimates.
– Build project teams as it provides clear work assignments to the
team members and provides an overview how his or her work fit
into the overall effort.
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Why Use a WBS?
 A WBS breaks all the work into separate tasks of which
two types exist:
– Summary tasks. A summary tasks includes several
subordinate tasks and is not actually executed. Its
purpose is to summarize more detailed tasks, called
work packages.
– Work packages. These are the tasks that actually
require execution.
 E.g. Creating manual can be the summary tasks which
consists of the work packages: writing content, setting
layout, proofreading and printing manual.
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Why Use a WBS?
 Developing a WBS typically follows three steps:
– List the major deliverables or high-level tasks.
– Name all the tasks required to produce deliverables.
– Organize the WBS.
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Identify task relationships
 The sequence in which detailed tasks - work packages - are
performed is determined by the relationship between the tasks.
 Any time a series of tasks is performed, there will be
sequence constraints, i.e. some tasks need to be
performed before others.
 To visualize these constraints, tasks and sequential
constraints can be visualized as a graph.
 When doing so, two basic rules are important:
– Task relationships (arrows) should only be shown between work
packages (and not summary tasks).
– Task relationships should only reflect sequence constraints
between work packages, not resource constraints.
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 When visualizing task relationships in a graph, it can be
useful to identify significant events in the project, as
known as milestones. Such milestones are events and
have no duration. They serve following purpose:
– Milestones are useful anchors (commentators) . They provide a
quick overview how the project progresses.
– Milestones can be used to mark input from one party to another.
It illustrates when the project delivers something to its
stakeholders.
– Milestone allows visualization of events that aren’t represented
by a work package or summary task.
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 The sequential constraints between tasks, visualized by
graphs, can further be separated into different
categories:
– Finish-to-start relationship. The subsequent activity can only
start when then preceding activity finished.
– Start-to-start relationship. The subsequent activity can
already/only start when the preceding activity started.
– Finish-to-finish relationship. The subsequent activity can start
independently of its predecessor, but cannot finish before the
predecessor finishes.
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Work Packages
– Work packages are the deliverables in the lowest level of the work
breakdown structure.
– A work package may be divided into the specific activities to be
performed.
– there are three levels as follows:
– The first level, or project title level.
– The intermediate level, or summary level.
– The lowest level, or work package level.
 Now that the project is broken down into smaller, estimable work
packages, the goal is to estimate the duration of each work package.
 Note that the duration is the time between initiation to completion.
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Work package
Why work package?
• Way of managing the project by breaking it down
• Help determine skills required and amount of
resources needed
• Communicate work that needs to be done
• Work sequences are identified and understood
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Work Packages
 The work package is the point from which:
– Work activities are defined.
– The schedule is formed.
– Resources are assigned.
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Statement of Work (SOW)
 It is a working agreement between two parties (e.g., the
client and the agency).
 It is a formal document that defines the entire scope of
the work involved for a vendor and clarifies
deliverables, costs, and timeline.
 It is description of a work package which defines the
project performance criteria and resources.
 It is a narrative description of the end results to be
provided under the contract.
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Who prepares SOW
– Preparation of SOW depends on whether we need it for
internal or external purpose:

 Internal: Because the project office is usually composed of personnel
with writing skills.
 External: Because of competitive environment and the
customer may not have people trained in SOW
preparation for such environment.
Type Prepared by Submitted to
Internal Project office Customer (project
or user group)
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Why we need SOW?
 The purposes of preparing SOW.
– To ensure project sponsors and stakeholders
understand
 What needs to be done,
 Who is responsible for the work, and
 How it will be accomplished.
– To enable the project managers to make better
decisions, avoid confusion, and reduce cost.
– It acts as a guide and a reference for everyone
involved in the project.
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What Makes UP a Statement of Work(SOW)
 The following are the major parts of a statement of work.
1. Introduction
2. Purpose
3. Scope of work
4. Location of work
5. Period of performance
6. Deliverable's schedule
7. Applicable standards
8. Acceptance criteria
9. Payment schedule
10. Miscellaneous
11. Sign-off
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SOW vs. Scope of Work
 The terms statement of work and scope of work
are sometimes used interchangeably.
 However, there is a distinction.
SOW Scope of work
Comprehensive document
that outlines the project's
goals, deliverables, costs, etc.
One part of the statement of
work. Details how those
project objectives will be
achieved
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Project Deliverables
 Recall what is project?
– Deliverables are a tangible or intangible goods or services
that must be produced in order to fulfill the goals of the
project.
 Example:
 In a house building project, the house itself is the deliverable.
 In stadium building project, the stadium itself is the deliverable.
– A deliverable is considered a work package if, it can be
estimated reasonably and confidently.
 It can be completed quickly and without interruption
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Properties of Project Deliverables
 Deliverables:-
– Must have measurable results and measurable
outcomes.
– Should be specific and measurable, like goals.
– Could be a report, document, software product,
or any other building block of a project.
– Can also be called as something definite or specific
created by the work performed during the project
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Criteria for Project Deliverables
 Any output classified as deliverable must meet a
following criteria.
– It should be within Scope of project.
– Stakeholders - external or internal -should agree on
the deliverable.
– It should help achieve the project's objective.
– It must be the result of deliberate work
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Classification of the Project Deliverables
 The project deliverables can be classified as
 1 External or Internal
 2 Tangible or Intangible
 3 Big or Small
 External or Internal
– External deliverables
 are usually those that the project delivers to the users or the client.
 It would be something that would meet the customer's demand.
 Example: Website you make for a client.
– Internal deliverables
 are those which would assist in accomplishing the project objectives.
 They are deliverables which the project generates internally.
 Example: Creating documents, paying taxes, keeping
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Classification cont'd
 Tangible or Intangible
– Tangible deliverables: A deliverable can be tangible like a
football ground, a factory.
– Intangible deliverables: Sometimes you need to conduct
training so that resources can work on the project. So, you
may have a project to train the employees. This would be
intangible.
 Big or Small
– Deliverables can be any size. So, it would depend on the
requirement. There is no specific guideline to this.
Something small for one project/customer can be big for
another project/customer.
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Assign and level resources.
 Now that the schedule is made, it is time to assign
resources to the schedule. It’s goal is to do so in order to
optimize the use of people and equipment to the project.
 It begins with the assumption that, whenever possible, it is most
productive to have consistent, continuous use of the fewest
resources possible.
 In other words, try to avoid repeatedly adding and removing
resources time and again throughout the project.
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Cont’d
 This goal is achieved by the act of resource smoothing
which focuses only on people and equipment, not
materials.
 The amount materials needed is dictated by the
specifications.
 Resource levelling follows a four-step process:
– Forecast the resource requirements throughout the project for
the initial schedule.
– Identify the resource peaks.
– At each peak, delay non-critical tasks within their float.
– Eliminate the remaining peaks by re-evaluating the work package
estimates.
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-
 Any Question?
 End of the chapter 1
 Thanks!!
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Project Planning and Excution chapter 01.ppt

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Project Planning and Excution chapter 01.ppt