Fundamentals of

Project Planning and

Management
Week 4: Ready, Set, Go!

Yael Grushka-Cockayne

Fundamentals of
Project Planning and Management
Week 1
Week 2 Week 3 Week 4
Define and
Plan Improve Plan Execute
Organize

Project Goal Project Modes of

The Three Scoping Assessing Execution
Objectives Dependencies Risks and
and their Planning for
Priorities Schedule Ambiguity And those
Organization Trade-Offs who execute

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1
 Project: Launch and Manufacture Lumi Juice

Image Credit:
Hillary Lewis, Lumi

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2
 Project Life-Cycle
Initiate Plan Execute Close
•Establish •Identify Scope •Monitor •Sign off
organization •Identify tasks, •Communicate •Conduct a
•Project Charter dependencies and report formal post-
and Definition and schedule •Correct and mortem
•Plan resources control
•Clarify trade-
offs and
decision
making
principles
•Develop a risk
management
plan

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3
 • Physical or Virtual?
Project Execution • Frequency?
Monitor • Project Management Office?
• What decisions will be • What information will be
made? monitored?
• What actions will be
taken?
• Who is in charge of
the execution?
• How will the outcomes
Execute
be communicated?
Correct Report
and
Collect • Frequency?
Control
• By Who?
• To Who?

Startup Project

Startup Project

Creative Strategy IT Fundraising Marketing Sales Finance HR

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4
 Startup Project: 12 Weeks, $8500
Duration
Activity # Description Predecessors Cost
(Weeks)
1 Creative - 5 $1000
2 Strategy - 2 $500
3 IT - 4 $3000
4 Fundraising 1 4 $500
5 Marketing 1,2 2 $2000
6 Sales 1,2 5 $500
7 Finance 5,6 2 $750
8 HR 4,6 1 $250

Start Date Monday January 19, 2015

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5
 Status On Monday February 1, 2015

Activity Duration Work Money

Description Cost
# (Weeks) Completed Spent
1 Creative 5 $1000 25% $500
2 Strategy 2 $500 75% $300
3 IT 4 $3000 25% $1000

Status On Monday February 1, 2015

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6
 Earned Value Analysis
• Creative: 25% completed, actual cost $ 500

• Scheduled work = 40% (2w/5w)

• Actual work = 25% (1.25w/5w)
• Budgeted Cost = $ 1,000
• Planned Value = 40% x 1,000 = $400
• Earned Value = 25% x 1,000 = $250
• Actual Cost = $500

• Schedule Performance Index (SPI) = Earned Value / Planned = 63%

• Cost Performance Index (CPI) = Earned Value / Actual = 50%

Performance Indices

On track:
120% Schedule
Performance
110% Index (SPI) = 1

100% On track:
CPI Cost Performance
Index (CPI) = 1
90%
SPI
80%

Time

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 Earned Value Analysis

Measure Equation Comment

Earned Value (EV) EV=% work completed × baseline cost BCWP, Budgeted cost of work performed

Planned Value (PV) PV=% work scheduled × baseline cost BCWS, Budgeted cost of work scheduled

Actual Cost (AC) ACWP, Actual cost of work performed

Schedule Variance (SV) SV=EV-PV

Cost Variance (CV) CV=EV-AC

Schedule Performance Index (SPI) SPI = EV/PV SPI < 1: Project is behind schedule
SPI > 1: Project is ahead of schedule
Cost Performance Index (CPI) CPI = EV/AC CPI < 1: Project is over budget
CPI > 1: Project is under budget
Cost-Schedule Index (CSI) CSI = CPI × SPI CSI < 1: Project is not healthy
CSI > 1: Project is healthy

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8
 How Bad is it?

• Critical Path not affected

• Less than a week delay
• $925 over expected budget

Why are Projects still Late? Over Budget?

• Technical factors:
• Internal complexity
• External complexity

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9
 Why are Projects still Late? Over Budget?

• Technical factors:
• Internal complexity
• External complexity
• Human factors:
• Multi-tasking

Why is Multi-tasking bad?

0 1 2 3

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 Why is Multi-tasking bad?

0 1 2 3

Why are Projects still Late? Over Budget?

• Technical factors:
• Internal complexity
• External complexity
• Human factors:
• Multi-tasking
• Parkinson's Law
• Student Syndrome

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11
 Can We Overcome?

• Project level buffers

• Small dedicated teams
• Specific short tasks
• Team work

Why Agile?

• Technology firms
• Release pace was declining
• Quality was suffering
• Engineer moral
• Padding and no accountability

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12
 Agile Manifesto

Agile Principles and Manifesto

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13
 Agile Variations
Scrum Sprints
• “An iterative framework within which people can address complex adaptive
problems, while productively and creatively delivering products of the highest
possible value.”
www.scrumguides.org

Kanban
• Continuous flow model with no iterations. Suited for short-cycle deliverables,
limiting work in progress.

Agile (Scrum) Team

• Cross-functional (programmers, test, design)

• Members should be committed full-time
• Self-organizing team

Developers Scrum master Product owner Customer

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 The Sprint

Delivered
Product Sprint
Item
Backlog Backlog

Critical to Agile success: The Meetings

Delivered
Product Sprint
Item
Backlog Backlog

Sprint Planning Daily Scrum/Stand up Sprint Review

Sprint Retrospective

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15
 Benefits to Agile

• Empowers the Development team

• Independence, autonomous, focused team.
• Developers want to deliver a product to the client.

• Creates joint incentives and transparency with the client.

• Helps firms build the right thing, at the right time, and build
it right!

Contention Around Agile

• A “living in the moment” culture

• Less documentation
• #noestimates movement
• Hard to master – requires the right
mindset
• Can be challenging with Distributed
teams

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16
 Framework for selecting PM Method
Scope Agile
Critical Path — Short iterations
— WBS, task driven — Continuous delivery
— Critical path — Self guided teams
— Complete picture of project — Working closely
with client for
common goal
— When scope is
highly uncertain

Time Budget

Project Life-Cycle
Initiate Plan Execute Close
•Establish •Identify Scope •Monitor •Sign off
organization •Identify tasks, •Communicate •Conduct a
•Project Charter dependencies and report formal post-
and Definition and schedule •Correct and mortem
•Plan resources control
•Clarify trade-
offs and
decision
making
principles
•Develop a risk
management
plan

This slide handout was created by the University of Virginia Darden School of Business and is provided to support your learning while taking this course. Please
do not share or distribute it.
17