Project Planning

“ If you don’t plan for the

project, you are planning for
failure”
“ Plans act as a road map of
complicated process to manage
project”

1
6 Stages of Project Planning
1. Preliminary coordination with various
parties(client,developer,govt. agency…)
2. Provide detail description of various tasks
involved.
3. Deriving project budget.
4. Work on schedule.
5. Project status report.
6. Project termination.

Chapter 5 Planning 2
Why initial project coordination with
various parties crucial?
 Define objectives & scopes of the
project.
 Technical objectives are established.
 Basic areas of performance
responsibilities delegated.
 Tentative schedules and budgets are
worked out.

Chapter 5 Planning 4
Project Scope Checklist
1. Project objective
2. Deliverables
3. Milestones
4. Technical
requirements
5. Limits and exclusions
6. Reviews with
customer 4–5
Project Scope: Terms and
Definitions
 Scope Statements
 Also called statements of work (SOW)
 Project Charter
 Can contain an expanded version of scope
statement
 A document authorizing the project
manager to initiate and lead the project.
 Scope Creep
 The tendency for the project scope to
expand over time due to changing
requirements, specifications, and priorities.
4–6
What is project’s deliverables?
 Involving client in early part of planning
process.
 Determine client’s needs and expectations
 Some project starts with front ends – bidding
all the way to commissioning and delivery
 Others may be construction on product
development

Chapter 5 Planning 8
9 Key Elements of Project Plan
1. Overview
 Short summary of the objectives and scope of
the project.
2. Objectives
 Detailed statement of the goals (profit, etc ….)
3. General Approach
 Describes both the managerial and the technical
approaches.
4. Contractual Aspects
 A complete list and description of all reporting
requirement.

Chapter 5 Planning 9
Elements of Project Plan (cont.)
5. Schedules
 Various schedule and lists of all milestone.
6. Resources
a) Budget.
b) Cost monitoring and control.
7. Personnel
 Personnel requirements (subcontracting)
8. Evaluation Methods
 Be evaluated against the standard.
9. Potential Problems
 Anticipate potential difficulties.

Chapter 5 Planning 10
Chapter 5 Planning 11
Chapter 5 Planning 12
Role of System Integration in Project
Management
 Integrating the technical
disciplines (science or art) of the
project to achieve the customer’s
objectives.

Chapter 5 Planning 13
3 Major Objectives of System
Integration
1. Performance
 System design, reliability, quality, maintainability,
etc.
2. Effectiveness
 Design system to achieve performance in an
optimal manner.
3. Cost
 Value engineering examines all cost trade off.

Chapter 5 Planning 14
Hierarchical Planning System
1. Goals must be specified.
2. Identifying the set of required
activities to achieve the goals.
3. Each activities and events can be
decomposed into sub-activities and
sub-events.

Chapter 5 Planning 15
Planning Process Tools
 Work Breakdown Structure (WBS).
 Linear Responsibility Chart.
 TREND
 Plan to include design,
fabrication/construction(prototype),
mass production
 R & D is also a project - > uncertainties

Chapter 5 Planning 16
Chapter 5 Planning 17
Work Breakdown Structure
(WBS)
 Project sub-divided into hierarchical
units of tasks, work packages, and work
units.
 Each part of unit tasks, work packages
and work units is budget able, in terms
of money, labor hours, and other
requisite resources.

Chapter 5 Planning 18
Work Breakdown Structure
(WBS)
 Project is breakdown into a group of
activities.
 Each activity is breakdown into a task
list.
 This task list is put into a calendar.
 Then, assign people, time, money and
other resources.

Chapter 5 Planning 19
Work Breakdown Structure
(WBS)
 Schedule Task list into calendar.
Activity Calendar

 Assigning people, time, money to each

activity.
 Make themselves competent.
 Managing “intelligent” people.
Chapter 5 Planning 20
Activities: Work Breakdown
Structure
 Breakdown task into activities
 Top-down refinement possible
 List activities which form a single
operation or function which you know is
achievable
 Work breakdown structure

Chapter 5 Planning 21
Chapter 5 Planning 22
 Example of WBS: “Holiday”
holiday

travel
documents booking household

choose
passport tickets confirm cat!
resort

insurance brochures

Chapter 5 Planning 23
 List of activities
• Booking:
• get brochures • Household:
• choose resort • feeding the cat!
• make booking • This is a simple
• confirm booking example:
• Travel documents: • inoculations
• check passport • visas
• book tickets • travel money
• get insurance • etc.

Chapter 5 Planning 24
 Creating the WBS
 Work Breakdown Structure (WBS)
 An hierarchical outline (map) that identifies the
products and work elements involved in a
project.
 Defines the relationship of the final deliverable
(the project) to its sub-deliverables, and in turn,
their relationships to work packages.
 Best suited for design and build projects that
have tangible outcomes rather than process-
oriented projects.

4–25
Hierarchical
Breakdown of the
WBS

* This breakdown groups work

packages by type of work within a
deliverable and allows assignment of
responsibility to an organizational
unit. This extra step facilitates a
system for monitoring project
progress (discussed in Chapter 13).

FIGURE 4.3

4–26
 How WBS Helps the Project
Manager
 WBS
 Facilitates evaluation of cost, time, and technical
performance of the organization on a project.
 Provides management with information appropriate
to each organizational level.
 Helps in the development of the organization
breakdown structure (OBS). which assigns project
responsibilities to organizational units and
individuals
 Helps manage plan, schedule, and budget.
 Defines communication channels and assists
in coordinating the various project elements.
4–27
Work Breakdown Structure

FIGURE 4.4

4–28
Work Packages
 A work package is the lowest level of the
WBS.
 It is output-oriented in that it:
1. Defines work (what).
2. Identifies time to complete a work package (how long).
3. Identifies a time-phased budget to complete
a work package (cost).
4. Identifies resources needed to complete
a work package (how much).
5. Identifies a person responsible for units of work (who).
6. Identifies monitoring points (milestones)
for measuring success.

4–29
 Coding the WBS for IS
 WBS Coding System
 Defines:
 Levels and elements of the WBS
 Organization elements
 Work packages
 Budget and cost information
 Allows reports to be
consolidated at any level in the
organization structure

4–30
Time Management
 When activities happen:
 Start and finish
 How long they take:
 Estimates vs. actual?
 Relationship between activities:
 Dependencies
 Parallel activities

Chapter 5 Planning 31
 Gantt chart
1 2 3 4 1 2 3 4 1 2 3 4

WP1. Booking
A1.1 brochures
A1.2 resort
A1.3 booking
A1.4 confirm

WP2. Documents
A2.1 passport
A2.2 tickets
A2.3 insurance

WP3. Household
A3.1 cat!
time
finish 32
People
 Task assignment
 Responsibility for task completion:
 Task management
 Liaison with other tasks
 Meetings

Chapter 5 Planning 33
Linear Responsibility Matrix
 Show the relationship of personnel
(who is responsible for what) and to
identify where special coordination is
necessary.

Chapter 5 Planning 34
 Linear Responsibility Matrix - Holiday
primary backup comments
WP1. mum dad
A1.1 mum dad
A1.2 mum dad must coordinate with kids
A1.3 dad mum
A1.4 dad mum

WP2. fred bob

A2.1 fred bob need cheques from mum
A2.2 bob fred
A2.3 sally bob

WP3. sally amy need to buy stock of cat food!

A3.1 sally amyChapter 5 Planning 35
Linear Responsibility Example

Chapter 5 Planning 36
Linear Responsibility Example

Chapter 5 Planning 37
 Responsibility Matrices

 Responsibility Matrix (RM)

 Also called a linear responsibility chart (LRC).
 Summarizes the tasks to be accomplished and
who is responsible for what on the project.
 Lists project activities and participants.
 Clarifies critical interfaces between units
and individuals that need coordination.
 Provide an means for all participants to view their
responsibilities and agree on their assignments.
 Clarifies the extent or type of authority that
can be exercised by each participant.
4–38
Responsibility Matrix for a Market Research Project

FIGURE 4.6

4–39
Responsibility Matrix for the Conveyor Belt Project

FIGURE 4.7

4–40
Interface Coordination through
Integration Management

 The most difficult aspect of implementing a

project is the coordination and integration of the
various elements of the project
 The intricate process of coordinating the work
and timing of all inputs is called integration
management
 Interface coordination is used to denote the
process of managing this work across multiple
groups
Chapter 5-23
 Approaches to Interface
Management
 Recent work on managing the interface
focuses on the use of multifunctional
teams (MT)
 There is general agreement that MT has a
favorable impact on product/service design
and delivery
 Successfully involving cross-functional teams
in project planning requires that some
structure be imposed on the planning process
Chapter 5-24
Interface Co-ordinate Process

 Identification and recording interface

 Creating Interface Agreement

 Resolving Conflict
 Monitoring Status
 Reporting Status to all Stakeholder
 Closing Interface Agreement

Chapter 5 Planning 43
 Interface Coordination

Interface is defined as a point of contact between entities working

on a common project. This Points are:
 Physical: Physical interface between components

 Functional: Functional Requirements between system

 Contractual: Interactions between subcontractors/suppliers

 Organizational: Information exchange between disciplines

 Knowledge: General information exchange between parties

 Resource: Point of dependencies between equipment, material

and labour supply

Chapter 5 Planning 44
 Interface Coordination Types

 Internal Interface: Where the complete

responsibility lies within Project team scope of
work.
 External Interface: These are the part of Scope
of Work under the responsibility of contractor
related to the project

Chapter 5 Planning 45
Roles & Responsibilities of Interface Coordinators

 Participate in interface Meeting with involved parties as

required to manage interface
 Review interface request
 Ensure resolution for interface request
 Actively monitor interface request register to expediting
requests and open/update/close request.
 Provide collaborative interface resolution support
 Communicate to all stakeholders about potential impacts due to
unsatisfactory resolution response.

Chapter 5 Planning 46
Concurrent Engineering

What is Concurrent Engineering?

Concurrent engineering, also known as simultaneous
engineering, is a method of designing and
developing products, in which the different stages
run simultaneously, rather than consecutively. It
decreases product development time and also the
time to market, leading to improved productivity and
reduced costs.

Chapter 5 Planning 47
Why do companies adopt concurrent
engineering methods?

The notable business benefits of concurrent engineering make it a

compelling strategy to adopt. Introducing concurrent engineering
can lead to:
Competitive Advantage- reduction in time to market means
that businesses gain an edge over their competitors.
Enhanced Productivity- earlier discoveries of design problems
means potential issues can be corrected soon, rather than at a
later stage in the development process.
Decrease Design and Development Time- make products
which match their customer’s needs, in less time and at a reduced
cost

Chapter 5 Planning 48
Five Key Elements of Concurrent
Engineering Approach

 A Process
 A Multidisciplinary Team
 An Integrated design model
 A Facility
 A Software infrastructure

Chapter 5 Planning 49
Concurrent Design Process
Involves coordination of the technical and non-technical functions
of design and manufacturing within a business.

Introduction to Engineering – E10 50

Chapter 5 Planning 51
Chapter 5 Planning 52
 Advantages of Concurrent
Engineering

 It encourages multi-disciplinary collaboration

 Reduce product cycle time
 Reduce cost
 Enhanced Quality
 Enhance Productivity
 It gives the organization the competitive edge

Chapter 5 Planning 53
 Disadvantages of Concurrent
Engineering

 Complex to Manage
 Relies on everyone working together hence
Communication is critical
 Room for mistake is small as it impact all the
departments

Chapter 5 Planning 54
 Project Communication Plan
 What information needs to be collected
and when?
 Who will receive the information?
 What methods will be used to gather
and store information?
 What are the limits, if any, on who has
access to certain kinds of information?
 When will the information be
communicated?
 How will it be communicated? 4–55
 Information Needs

 Project status reports

 Deliverable issues
 Changes in scope
 Team status meetings
 Gating decisions
 Accepted request changes
 Action items
 Milestone reports 4–56
 Developing a Communication
Plan
1. Stakeholder analysis
2. Information needs
3. Sources of information
4. Dissemination modes
5. Responsibility and timing

4–57
Shale Oil Research Project Communication Plan

FIGURE 4.8
4–58
Key Terms
Cost account
Milestone
Scope creep
Priority matrix
Responsibility matrix
Scope statement
Work breakdown structure (WBS)
Work package

4–59