3/Planning the Project

Review Questions: 1,2,3,4,6,7,8

Discussion Questions: 9,10,11,12,16,17,23
Incidents for Discussion: 1
Problems: 24
Cases: 1

Chapter 3
Planning the Project

This chapter begins by discussing the nine key elements of the project plan. The following two
sections address the planning process in greater detail with considerable emphasis placed on the
project launch meeting and the hierarchical planning process by which parts of the plan are
sequentially broken down into finer levels of detail. This provides a natural transition to the
creation of the Work Breakdown Structure. Finally, the chapter is concluded with a discussion
of multidisciplinary teams including the topics of integration management, concurrent
engineering and the design structure matrix.

Cases and Readings

Some cases appropriate to the subject of this chapter are:

Harvard: 9-692-058 Taco Bell Corp. This 31-page best-selling case describes a project to
implement a new strategic plan involving major changes in layout, staffing, quality, product
design, and information systems. The coordination and integration of all these project activities
is what makes the plan successful, and hard for competitors to imitate. Two teaching notes are
available for this case: 5-692-091 (20 pages) and 5-196-073 (12 pages).

Harvard: 9-694-059 Hardcard Project: Plus Development Corp. (A1); 9-694-060 Hardcard
Project: Plus Development Corp. (A2) This 10-page (12-pages for A2) case allows the students
to evaluate, using Microsoft Project software, the time line, resource allocations, and other
aspects of a major project concerned with developing a hard disk drive. The perspective is from
that of the VP of engineering. The (A2) case updates the project and the students have to
determine whether a specific market introduction date will be feasible for the project. (Note:
this case duplicates some of the information in the Plus Development Corp. case suggested for
Chapter 2.)

Harvard: 9-193-013 American Airlines: The InterAAct Project (A) and 9-193-014 (B) This 17-
page (and 11-page) set of cases describes the design and implementation of an extensive

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 3/Planning the Project

knowledge information system project. The implementation is in trouble in the (A) case and
must be reassessed. The (B) case describes the outcome of the successful implementation. A
17 page teaching note (5-194-095) is available.

Harvard: 9-390-010 Grosvenor Park This case describes a very successful project involving the
development of a condominium.

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 3/Planning the Project

A reading appropriate to the subject of this chapter is:

L.M. Mallak et al. Planning for Crises in Project Management (Project Management Journal,
June 1997). This article applies the planning tools from emergency management to projects
with their inevitable crises. The application of risk analysis, contingency plans, logic charts, and
tabletop exercises is discussed in terms of both planning for crises and managing them when
they actually occur. Examples such as the 1996 Atlanta Olympic Games are used to illustrate
the effectiveness of crisis planning tools.

Answers to Review Questions

1. What are some of the benefits of setting up a project plan for routine, frequent projects?

One key benefit of setting up a project plan for routine, frequent projects is that the project
plan can be used as a template for similar projects in the future. Having such a template
can greatly simplify future projects – just filling in the blanks, while at the same time can
ensure that important steps or activities are not overlooked.

Furthermore, the project plan can be continuously improved and enhanced as the
organization gains additional experience with these projects.

2. Discuss the reasons for inviting the functional managers to a project launch meeting
rather than their subordinates who may be actually doing the work?

The reason for inviting the functional managers to the project launch meeting is that it is
important to get their buy-in and support for the project and understanding the load on
their subordinates. The functional managers can have a significant impact on the degree to
which the project succeeds or fails based on their willingness to assign key subordinates to
the project. Clearly, if they are convinced up-front of the importance of the project and
perap even ave inpu ino e projec’ cope, their cooperation is more likely in later
stages of the project.

Another important reason for including functional managers in the project launch meeting
is to get their commitment to help develop the initial plan.

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 3/Planning the Project

3. Discuss the pros and cons of identifying and including the project team at the project
launch meeting.

Some of major advantages to identifying and including project team members in the project
launch meeting would be:

o Getting their support early on.

o Letting them hear first hand from senior management the importance of the project
to the organization, and
o [Perap] geing eir inpu on more ecnical iue a e projec’ cope i
initially defined.

Major disadvantages include:

o Not being able to identify all project team members at this early stage.
o Getting too bogged down in technical details to the detriment of bigger picture
issues, and
o [Perhaps] less involvement from the functional managers if they feel their
department is adequately represented by project team members from their
respective departments.

4. Wy o “elf-irecte team” perform poorly? Wat can be one to improve teir
performance?

One reason why self-directed teams may perform poorly is because they may not have a
good understanding of how their efforts are meant to support overall organizational
objectives. In the absence of this understanding, the team will likely create its own
objectives which will probably lead o ubopimizaion if e eam’ objecive are only
loosely related to broader organizational objectives.

The solution to this problem is to ensure that the team has a solid understanding of how its
objectives and its work are meant to support broader organizational objectives.

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 3/Planning the Project

5. Why is participatory management beneficial to project planning? How does the process
of participatory management actually work in planning?

Participatory management (i.e., including project team members in the planning process) is
beneficial in that it helps ensure that:

o Important issues are not overlooked, and

o Team members are committed to the project.

Furthermore:

o Team members can be asked to identify the tasks required to complete the project
along with their estimates of time and other resource requirements.

6. What is the difference between the Resource column on the action plan (that would
include personnel needed by the project) and the Assigned to column?

The Resources column is more general and simply lists the type of human, material, and
machine resources needed.

Te “Aigned o” column i more pecific and idenifie e paricular peron wo a
responsibility for completing the activity.

7. Under what circumstances is it sensible to do without a project launch meeting?

While holding a project launch meeting is always a sensible step, it may not be essential or
required in cases where the project is:

o Quite routine and frequent. In these cases the scope is likely well understood and the
functional managers have well defined responsibilities, and
o To be completed entirely within one functional department. In this case, the
functional manager involved can ensure the appropriate resources are assigned to
the project as well as clearly define and articulate the project's scope.

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 3/Planning the Project

8. What limitations associated with traditional project management techniques like Gantt
charts and precedence diagrams does the Design Matrix Structure overcome?

A limitation of traditional project management planning tools is they focus primarily on task
precedence relationships.

In some projects (particularly new product development projects) another important aspect
is what information does a task need from preceding tasks. The Design Structure Matrix
addresses the issue of information flows within a project. When the matrix is complete, all
the tasks that provide information needed to complete a given task can be determined by
looking acro a’ paricular ak’ row.

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 3/Planning the Project

Suggested Answers to Discussion Questions

9. For each of the nine components of a project master plan, discuss the problems that
might be raised if the element was incomplete.

The elements required in a project plan fall into the following nine categories:

o Overview: An incomplete overview of the project could lead to overlooking

key milestones. Typically, milestones correspond to important
events of a project and it is particularly appropriate to assess the
projec’ performance a ee ime. If imporan mileone are
not identified, opportunities to identify problems early on may be
missed.
o Objectives: Inadequaely defining e projec’ objecive could lead o
suboptimzation and missing important specifications.
o General Not thoroughly discussing the General approach could
approach: increase the number of ad-hoc decisions that have to be made as
the project is completed and could also result in inconsistencies as
different team members employ different approaches to address
similar issues.
o Contractual The consequences of incompletely defining contractual
aspects: aspects include scope creep and major disputes between the
client and the project team.
o Schedules: An incomplete schedule typically results in overlooked activities
which subsequently translates into late project completions
and/or cost overruns.
o Resource Similarly, an incomplete resource requirements section
requirements: can result in failure to have required resources available when
needed or omitted cost elements such as overhead.
o Personnel: An incomplete personnel section could result in overlooking
important skill requirements or the need to provide the necessary
training.
o Evaluation Not adequately specifying evaluation methods could
methods: lead to not capturing important project performance data which
could impact the timely discovery of problems.
o Potential Finally, not adequately considering potential problems
problems: means that proactive contingency plans for problems that could
have been anticipated are not available, forcing the project team
into a more reactive mode.

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 3/Planning the Project

10. Give several examples of a type of project that would benefit from a template project
action plan being developed.

Projects that are completed routinely would benefit from a template project action plan. In
addition to routine system maintenance projects, examples of such projects include:

o Constructing a house.
o Taking a drug through clinical trials, and
o Inalling e ame compuer yem in all of an organizaion’ manufacuring plan.

11. Why is the hierarchical planning process useful for project planning? How might it
influence the plan if the hierarchical planning process was not used?

The hierarchical planning process is useful for project planning for a number of reasons:

o By starting very broadly and gradually adding more detail it is a logical and
systematic process, and
o It fits well with typical organizational hierarchies in the sense that senior and middle-
level managers can focus on the top level items and then delegate the specification
of these details to the people that will be responsible for completing these tasks.

A key problem with not using hierarchical planning is that important tasks may be
overlooked which may ultimately delay the project and/or result in cost overruns.

12. What causes so much conflict on multidisciplinary teams? As a PM what would you try to
do to prevent or reduce such conflict?

Probably the leading source of conflict on multidisciplinary teams occurs is the fact that
team members tend to view problems only from their own functional perspective.

One way to avoid this problem is to recruit project team members that have an orientation
to problem solving rather than a particular solution approach.

13. Of wat elp i a “map of interepenencie” to a PM who is managing a transdisciplinary

team?

A map of interdependencies shows the interrelationships between various members of the

project team across various functional areas.

Since the relationships between functional areas are likely to change as the project
progresses, explicitly mapping out these relationships for each phase of the project can help
ensure that the various areas are working together at the appropriate times.

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 3/Planning the Project

14. Develop an action plan with at least two levels for a project you are personally familiar
with (e.g., moving away to college, registering for class, cleaning out a garage). (Hint: the
plan will be more useful; as a learning exercise if you have a subordinate or two – real or
imaginary). Be sure to include precedences, task durations, resource requirements, and
milestones. Enter the plan in MSP.

The following example describes a project involving the development of a history term
paper. It involves three students (Alex, Gary and Neil) and their instructor, Professor
Daniels.
History Term Paper

Estimated
WBS Task Name Predecessor Duration Resource Name
1 Select Topic 1 Week Alex, Gary, Neil
2 Get Topic Approved 1 1 Week Professor Daniels
3 Outline Paper 2 3 Days Alex
4 Conduct Research 3 Weeks
4.1 Library Research 3 3 Weeks Gary and Neil
4.2 Research Web 3 2 Weeks Alex
5 Write-Up Report 4 Weeks Alex, Gary, Neil
5.1 First Draft 4.1, 4.2 2 Weeks Gary
5.2 Proof First Draft 5.1 1 Week Alex, Gary, Neil
5.3 Edit First Draft 5.2 1 Week Neil

15. Discuss the drawbacks of implementing a project plan without an LRC.

A key drawback of not using a LRC (Linear Responsibility Chart) is that required
communications or tasks may fall through the cracks as no one took responsibility for
completing tem … auming ey were omeone ele’ reponibiliy.

16. What are the potential ramifications of not utilizing integration management techniques
or concurrent engineering while planning and implementing a project?

Important relationships across functional areas will likely be overlooked if integration

management is not utilized. Not identifying these relationships will:

o Reduce opportunities for concurrent engineering, as well as

o Lead to disconnects between these functional areas.

In both cases the project schedule and budget are likely to suffer.

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 3/Planning the Project

17. Lit te avantage of uing an “empowere team” for planning. Wat conition mut
be met for these advantages to accrue?

Advantages of empowered teams include:

o High quality solutions.

o Avoiding micromanagement.
o More accountability.
o A greater likelihood of obtaining a synergistic solution, and
o The availability of a tool for timely team evaluation and feedback.

The most important condition is that senior management must clearly spell out (a) the
projec’ goal and (b) be clear abou e range of e eam’ auoriy and reponibiliy.

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 3/Planning the Project

18. Puruing a egree or certificate i a major project. Contruct a brief “project plan” for ti
project that includes all 9 elements described in the chapter.

Following, as an example, is a project plan for a student aiming to earn his/her MBA:

Overview: The purpose of this project is to earn an MBA. The major milestones
include completing the first year of core course work, obtaining a
summer internship, completing the second year of course work, and
obtaining a full time position at a leading consulting organization.

Objectives: My goal is to increase my salary by 70 percent by obtaining full time

employment with a leading consulting organization upon completing a
two-year MBA. Long-term, my goal is to make partner of a consulting
organization within seven years of graduation.

General: I will apply to the top public MBA programs in the Ohio, Indiana,
approach: and Michigan areas. I will visit each that I am accepted to assess the
cool’ culure. I will alo reearc em o evaluae eir ucce in
placing graduates in top consulting organizations.

Contractual I may be required to make a financial commitment to one school

aspects: while still being on the waiting list of more desirable school.

Schedule:
 December 2005: take GMAT Exam
 January 2006: research schools
 February 2006: fill out admissions applications
 May 2006: Visit schools
 June 2006: Make decision
 July 2006: House hunting trip
 August 2006: Move
 August 2006 – May 2007: complete core
 June – August 2007: Summer internship
 August 2007 – May 2008: Complete second year and interview for full
time consulting position

Resource I will use $50,000 from my savings and take out an estimated
requirements: $25,000 in student loans.

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 3/Planning the Project

Personnel: My brothers will help me move.

Evaluation Key performance metrics include my GPA and starting salary upon
methods: graduation.

Potential It has been six years since I have been in school and therefore my
problems: adjustment period may be longer than I expect. I may also encounter
interpersonal conflicts with teammates. Finally, the cost of housing or
tuition may be higher than I expect and/or my summer internship may
pay less than I expect which would create the need to borrow more
money.

19. Assume that your class instructor appointed you project manager to lead a dozen of your
classmates in writing up the end-of-chapter pedagogy materials (i.e., Review Questions,
Dicuion Quetion Problem Incient for Dicuion an Cae) a an Intructor’
Guide for this book. You plan to form subteams to work on each of these elements, each
headed by a subteam leader. Of course, all the subteam materials will need to be
integrate into te final Intructor’ Guie at te en. Contruct a WBS an linear
responsibility chart for this project.

The WBS for this project might be as follows:

End of chapter
pedagogy
materials

Review Discussion Problems Incidents for Cases

Questions Questions Discussion
1.1 1.2 1.3 1.4 1.5

Chapter 1 Chapter 1 Chapter Chapter 1 Chapter 1

1.1.1 1.2.1 1.3.1 1.4.1 1.5.1

Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 2

1.1.2 1.2.2 1.3.2 1.4.2 1.5.2

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 3/Planning the Project

20. You and your family and friends are planning to host a graduation party at the end of the
school year. Construct an action plan for this party.

Task Duration Predecessor Assigned To

1. Invitations
1.1 Make up list 1 hour -- Alec, Bob, Tia
1.2 Buy invitations 5 days 1.1 Tia
1.3 Mail invitations 1 day 1.2 Bob, Tia
1.4 Update RSVPs 2 weeks 1.3 Bob
2. Food
2.1 Buy cake 3 days -- Tia
2.3 Buy drinks 2 hours 1.4 Bob
2.4 Buy appetizers 2 hours 1.4 Alec
2.5 Plates, forks, cups 1 hour 1.4 Alec
3. Decorate
3.1 Purchase banner 1 hour -- Alec, Bob
3.2 Buy balloons 2 days -- Tia
3.3 Napkins 1 hour 1.4 Bob
3.4 Decorate house 1 day 3.1, 3.2 Alec, Bob, Tia

21. Construct an action plan for the project in Question 19.

Task Duration Predecessor Assigned To

1. Organization You
1.1 Establish subteams 2 hours -- You
1.2 Select subteam leaders 2 hours 1.1 Subteam members
1.3 Assign chapters. 2 hours 1.2 Subteam leaders
2. Conduct project
2.1 Prepare drafts 4 weeks 1.3 Chapter leaders
2.2 Review drafts 2 weeks 2.1 Subteam members
2.3 Revise drafts 2 weeks 2.2 Chapter leaders
2.4 Review final drafts 1 day 2.3 Subteam leaders
3 Finalize project
3.1 Combine chapter materials 2 days 2.4 Subteam leaders
3.2 Make final revisions 1 day 3.1 Subteam members
4 Submit materials 1 hour 3.1 You
4.1 Meet with class instructor 2 hours 3.2 Project members

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 3/Planning the Project

22. Consider one or more projects (from this course or elsewhere) that you understand
reasonably well. Identify situations where information learned from a later task of the
project becomes important to an earlier task.

As an example, one can consider the construction of a new house. Initially the homeowners
work with an architect to develop the plans for the house and, as part of the plans, the
dimensions for the kitchen are specified. Later in the process the homeowners go out and
actually select the cabinets and appliances for the kitchen. At this stage, it may be
discovered that the original dimensions are not optimal given the cabinets and appliances
the homeowners actually select.

23. Contrast the Project Plan, the Action Plan, and the Work Breakdown Structure.

o Project plan The primary function of a project plan is to serve as a map of the route from
start to finish. It should contain sufficient information that, at any time, the
project manager knows what remains to be done. It is a comprehensive
summary of the project.

o Action plan An action plan not only identifies the various task and their immediate
predecessor tasks but also the estimated time duration, the estimated
resources needed, and an identification of the individual(s) responsible for
carrying out the task.

o Work Breakdown The Work Breakdown Structure (WBS) is a set of all tasks in a
Structure project, usually arranged by task levels. It is sometimes presented as a tree,
much like an organization chart.

Problems

24. Prepare an action plan using MSP with the steps that must be completed before Vern
Toomey can contact outsourcing vendors. If Vern starts on August 1, 2005, how long will
it take to get ready to contact outsourcing vendors?

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 3/Planning the Project

Based on the information in the Gantt chart it would be Tuesday, August 23, '05 before Vern
would be able to contact vendors for the outsourcing proposals,

25. Develop a min map for a nonprofit organiation’ annual caino nigt carity event.

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 3/Planning the Project

26. In addition to your regular responsibilities, your supervisor has just assigned you to be in
charge of your organiation’ annual golf tournament. It i expecte tat 100 to 150
employees will enter the tournament. In addition to organizing the event, you are also
responsible for promoting it. Your budget for the event is $25,000. Develop a mind map
for the golf tournament project.

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 3/Planning the Project

Incidents for Discussion

Incidents for Discussion Included in the Chapter

Plymout Zoo’ Re-engineering Project

Question: what should Avery Mitchell do next?

Avery Mitchell should make no decision until he gets more information.

What information should he ask the consultants for before accepting their proposal?

He should ask for references, examples of other work redesign jobs the consultants have done,
and he should ask about the relationship they had with the former CEO of the zoo.

What project management tools would you suggest Avery ask the consultants to use to
outline the project more specifically and address his concerns?

He should also ask for:

o A specific action plan with deliverables, objectives, schedules, resource needs, etc.
o A linear responsibility chart so that Zoo officers can identify what the consultants are
responsible for and what the Zoo is accountable to do to meet the targets.

These pieces of information would help Avery determine if and how the work re-design project
would impact ongoing work or other projects going on. Also, this information would enable him
to see how the consultants propose to carry out the project. He can then determine the impact
of the project on the oo’s everyday operations. This would also enable him to see where and
how the cost savings were determined and whether they would be sufficient to meet the oo’s
profit projections.

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 3/Planning the Project

Time is Fleeting

Question: if you were the President, how would you handle this problem?

The president could ask the IT and HR department heads each to outline a project plan for the
approach they favored.

It might be better, however, if he asked them to work together to prepare action plans for each
of their recommended solutions to the current problem with the time clocks. The two
department heads could then be asked to plan cost benefit studies of both plans. They should
carefully delineate the objective of each project. Acting together, they could choose the best
alternative, based on the cost/benefit studies. Then they could jointly outline the
implementation project plan for the solution that they choose.

Additional Incidents for Discussion

CompuDraw’s Re-engineering Project

The president of CompuDraw, a large computer graphics publishing firm was presented with a
proposal by his Chief Operating Officer to hire a re-engineering consulting firm to come in and
help cut costs through work re-design. The proposal outlined the cost of the consultants and the
projected savings the firm could expect after the consultants work was finished. The president
was unclear about how the savings were determined and what would be the project specific
deliverables.

Question: What is your recommendation for the president to do next?

The CEO should make no decision until he gets more information.

Question: What project planning tools would you suggest to ask the consultants to use to
outline the project more specifically and address his concerns?

The COO must add a specific action plan with deliverables, objectives, schedules, resource
needs, etc. He should also include a linear responsibility chart so they can tell what the
consultants are responsible for and what CompuDraw is accountable to do to meet the targets.
This would help determine if and how the work re-design project would impact ongoing routine
work or other ongoing projects.

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 3/Planning the Project

Movies of the Future

Movie Design, a manufacturer of movies on video tape wants to get into the DVD business.
They feel they must move into the DVD market to remain competitive. They are planning to
take their top 50 selling videotape movie titles and convert them to DVD. This is a new
manufacturing process for them. The company would like to manufacture 10,000—20,000 DVD
movies per year beginning within nine months. The company has already selected the project
manager and the project team. The project manager is ready to begin; he is most concerned
about the project schedule, resources, and personnel.

Question: If you were the project manager, which planning tools would you start with to
resolve your concerns?

The project manager should first work up the project plan, carefully delineating the project’s
objectives, general approach, schedules, resources, and personnel. Then the project manager
can pick appropriate tools.

Question: Do these tools relate to each other? Explain.

The PM could begin with a work breakdown structure, linear responsibility chart, master
schedule, and other such elements of the action plan.

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Suggested Case Analyses and Solutions

St Dismas Assisted Living Facility -- 1

Teaching Purpose: The St. Dismas Assisted Living Facility cases comprise a set of cases
beginning in this chapter and are all associated with the same project – the planning, building,
and marketing of an assisted living facility for people whose state of health makes it difficult for
them to live independently, but who are not yet ill enough to require nursing home care. In this
initial installment of the case, students address issues related to the project deliverables, project
constraints and assumptions, the development of an action plan, and the selection of a project
manager.

Question #1: Define the project deliverables.

Deliverables of the project are:

 Construction of a 100 unit facility

 Provide a positive return on investment and contribute to overall business

Project outcomes that will be measured to determine project effectiveness are:

 Increase utilization of existing hospital outpatient services

 Develop more services focused on wellness and preventative medicine
 Increase census of inpatient units

Question #2: Define project constraints and assumptions.

Project assumptions are:

 For-profit subsidiary of St. Dismas

 Free standing apartment construction design
 Facility will be constructed to provide easy access to St. Dismas’ services such as
kitchen area, outpatient therapy areas, etc.
 100 units, some designed for heavy-assisted, and most light-assisted.

Project constraints are:

 Construction cannot begin until after November 1999

 Open facility in July 2000

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 3/Planning the Project

Question #3: Develop a level 1 action plan.

Outline the broad steps in the project, for example;

Number Step Who Does

1 Start ALF project
2 Building design COO
3 Construction Construction Manager
4 Define food service needs COO
5 Define housekeeping needs COO
6 Define staffing needs COO
7 Develop policies and procedures COO
8 Create budget for facility CFO
9 Create financial systems (payroll, CFO
accounting, etc)
10 Identify telecommunications & Director Information Services
information systems needs
11 Develop marketing plan (including Vice President of Business
ground breaking event) Development
12 Develop communications plan VP Business Development
13 Define clinical services needed Rehab Medical Director
14 Develop management structure Fred Splient
15 Identify all regulatory Fred Splient
requirements
16 Complete Project

Question #4: Is Dr. Splient a good choice for project manager? Support your position.

Students can support both yes and no answers.

However, Fred Splient is not an appropriate project manager. Fred should function as
the project champion. He can provide the necessary oversight and leadership without
actually managing the project. He is the Chief Executive Officer of a major medical
center; his role in the organization is not one of a project manager but an organizational
leader. Fred is also far too busy to handle the day-to-day needs of managing a large
project such as the planning and construction to open an assisted living facility. It has
also not been identified that he has the necessary skills to manage a project.

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 3/Planning the Project

Key points for discussion:

Why does Fred want to be project manager?

He wants control of the project, he wants to be sure the project gets done, he will have
members of his Board of Trustees sitting on the project team, this is a highly visible project, to
his customers, board and community members. This project is a major change from the regular
business of St. Dismas.

What sort of systems can Fred set up so that he sees that the project gets managed without
having to do it himself?

Fred needs to set up effective communications systems for the project. He could have the
project manager report directly to him. Fred could still chair the project steering team.

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 3/Planning the Project

John Wiley & Sons

Teaching Purpose: This case requires students to use their creativity and develop a WBS for a
website development project.

Question #1: Develop a mind map for this project.

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 3/Planning the Project

Question #2: Convert your mind map into a WBS.

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 3/Planning the Project

Question #3: Discuss how your mind map might be used to facilitate other project planning
activities such as resource allocation, schedule development, and risk analysis.

The mind map can be utilized to develop what additional resources (human) can be allocated,
and for what portion of the project. It would also facilitate the development of a schedule for
each component of the website and determine where risks might be encountered within the
project, where the pitfalls might be encountered as you develop the website.

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