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Chapter3.pdf
Project Management in Practice Sixth Edition
Copyright © 2016 John Wiley & Sons, Inc.
Chapter 3
Project Planning
Dr. Iman Nosoohi
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What are the reasons of project failure?
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Our Objectives Today!
qProject plan, Project charter qWork Breakdown Structure (WBS) qOrganization Breakdown Structure (OBS) qResponsibility Assignment Matrix (RAM) qRACI Matrix
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Project Plan
• Primary function of a project plan is to serve as a roadmap
• Should include the business case, financial benefits, and strategic reasons for the project
• Should contain sufficient information to know the status of the project at any time
• Also needs the project’s history to date
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Elements of a Proper Project Plan
• The process for managing change • A plan for communicating with and
managing stakeholders • Specifying the process for setting key
characteristics of the project deliverable • Establishing the cost baseline for the project
and developing a plan to manage project costs
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Elements of a Proper Project Plan continued
• Developing a plan for managing the human resources assigned to the project
• Developing a plan for continuously monitoring and improving project work processes
• Developing guidelines for procuring project materials and resources
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Elements of a Proper Project Plan continued
• Defining the project’s scope and establishing practices to manage the project’s scope
• Developing the Work Breakdown Structure • Developing practices to manage the quality
of the project deliverables • Defining how project requirements will be
managed
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Elements of a Proper Project Plan concluded
• Establishing practices for managing risk • Establishing the schedule baseline and
developing a plan to manage the project’s schedule
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Project Charter
A project charter is a formal, typically short document that describes your project in its entirety — including what the objectives are, how it will be carried out, and who the stakeholders are.
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Categories of Elements to Include in Project Charter
• The business need for the project • The assumptions underlying the project • Key constraints • Customer requirements • Identification of high-level risks • Key project milestones • A high-level budget • A list of key stakeholders • The PM assigned to the project • The boundaries of the project
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Examples for Project Charters
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The Planning Process-Overview 1. Develop and evaluate the concept of the project 2. Carefully identify what project deliverables must
have to be successful 3. Create a system 4. Test the prototype 5. Integrate the deliverable into target system 6. Validate the deliverable 7. Let client test it 8. Make sure client understands operating and
maintenance requirements
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The Planning Process-Nuts and Bolts
• Once approved, project should have a launch meeting
• New project manager should review project objectives
1. Make sure they understand 2. Identify important senior managers 3. Determine if anything is atypical
• Senior manager introduces project to group – Project manager chairs launch meeting
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Results of the Launch Meeting
1. The project’s scope is understood 2. Various functional managers understand
their responsibilities and have committed to develop an initial task and resource plan
3. Any potential benefits to the organization outside the scope are noted
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Any Questions?
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Sorting Out the Project-The Work Breakdown Structure (WBS)
• Inadequate up-front planning is a primary contributor to the failure of a project
• A primary purpose of the WBS is to ensure that no task is overlooked
• Every task, no matter how small, should be listed – Along with material and human resources
• This is a non-trivial task
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More on WBS Design
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An Introduction to WBS
– Over the years, it was determined that project managers needed a tool to help capture and control their project scope.
– This led to the development of a Work Breakdown Structure (WBS).
– The WBS is the most important item in defining and controlling the project scope.
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What is a WBS?
• The Work Breakdown Structure (WBS) is a tool that defines a project and groups the project’s discrete work elements in a way that helps organize and define the total work scope of the project.
• A WBS element may be a product, data, a service, or any combination.
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• The WBS is a dynamic tool and can be revised and updated as needed by the project manager.
What is a WBS?
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Why WBS is needed? Not all projects have a WBS, and it is true that
some of these projects have been successful. So why is a WBS needed?
The WBS: q Provides a framework for organizing and managing the approved project
scope. q Helps ensure you have defined all the work that makes up the project q Provides a framework for planning and controlling cost and schedule
information q It’s better to be deliberate about planning than rely on luck!
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The first three levels of WBS:
qLevel 1 contains only the project end objective.
qLevel 2 contains the major product segments or subsections of the end objective.
qLevel 3 contains definable components, subsystems or subsets, of the Level 2 major segments.
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Developing a WBS (1/4)
1.Identify final project products necessary for achieving project success. The WBS should assist the project manager
in developing a clear vision of the end product. • You need to answer the following question:
– What must be delivered to achieve project success?
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Developing a WBS (2/4)
2.Identify the major deliverables necessary for project success.
– These are items that by themselves do not satisfy the project need but combined make up a successful project.
– Example: design, production, acceptance test completion, delivery.
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Developing a WBS (3/4)
3.Incorporate additional levels of detail until management requirements for managing and controlling the project are met.
– Remember that each project is different, thus each WBS will be different.
– WBS’s from previous projects can be used as templates, but remember that the management philosophy and the level of details may be different from project to project
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Developing a WBS (4/4)
4. Review and refine the WBS until the stakeholders agree with the level of project planning and reporting.
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WBS Examples
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1 ACME Housing Corporation 1.1 New Home Construction
1.1.1 Concrete 1.1.1.1 Pour Foundation 1.1.1.2 Install Patio 1.1.1.3 Pour Stairway
1.1.2 Framing 1.1.2.1 Frame Exterior Walls 1.1.2.2 Frame Interior Walls
1.1.2.3 Install Roofing Trusses
1.1.3 Plumbing 1.1.3.1 Install Water Lines 1.1.3.2 Install Gas Lines 1.1.3.3 Install B/K Fixtures
1.1.4 Electrical 1.1.4.1 Install Wiring 1.1.4.2 Install Outlets/Switches
1.1.4.3 Install Fixtures 1.1.5 Interior
1.1.5.1 Install Drywall 1.1.5.2 Install Carpets 1.1.5.3 Install Painting
1.1.6 Roofing 1.1.6.1 Install Felt 1.1.6.2 Install Shingles 1.1.6.3 Install Vents
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A Sample (Partial) WBS
Figure 3-1
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Notes on WBS • Microsoft Project (MSP) will make a WBS list at the touch
of a key – But not a tree-chart
• At any given level, the “generality” or “degree of detail” of the tasks should be roughly at the same level
• The breakdown of level 1 tasks should be delegated to someone who will carry out the level 2 tasks
• The job of planning should be delegated to the lowest competent level
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Extensions of the Everyday WBS
• WBS generally oriented towards deliverables • Can be reshaped with some additional data often
not included in the WBS 1. Estimates of resources for each task 2. Estimates of the time for each task 3. Who has responsibility for each task 4. Sequence information for each task
• Increases it orientation toward planning and administration
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Organization Breakdown Structure (OBS)
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Organization Breakdown Structure (OBS)
qNow that our WBS is developed, the appropriate resources and responsibilities need to assigned.
qThe first step in doing this is developing the Organizational Breakdown Structure (OBS) for the project.
qThe OBS indicates the organizational relationships and is used as the framework for assigning work responsibilities.
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• Although a WBS can be depicted so as to look like an organizational chart, it is not an organizational chart.
• Remember the WBS defines a project and groups the project elements for managing a project.
• An organizational chart describes the project team that will accomplish the project.
WBS is different from OBS…
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qIn the following is an example of the OBS for the ACME house building project.
qThe OBS is structured by Responsible Department and then by Performing Department at the lowest level.
Organization Breakdown Structure (OBS)
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CONCRETE
PERF DEPT 6010
M. Manning
MASONRY
PERF DEPT 6020
T. Greams
TEST
PERF DEPT 6030
K. Neumann
CIVIL
RESP DEPT
R. Kelly
CARPENTRY
PERF DEPT 5010
R. Sites
ROOFING
PERF DEPT 5020
Y. Taylor
DRYWALL
PERF DEPT 5030
D. Smith
STRUCTURAL
RESP DEPT
P. Tate
PERF DEPT 4010
S. Johnson
HOOKUP/TIE-IN
PERF DEPT 4020
P. Ottis
ELECTICAL
RESP DEPT
J. Sims
WATER/SEWER
PERF DEPT 3010
K. Wells
GAS
PERF DEPT 3020
R. Oriely
PLUMBING
RESP DEPT
R. Lee
PROJECT OFFICE
RESP DEPT
B. Smithers
WIRING
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WBS+OBS=RAM (Responsibility Assignment Matrix) qWith the relationships and responsibilities
defined, the next step is to merge the WBS and OBS.
qMerging the WBS and OBS, the project manager creates a Responsibility Assignment Matrix (RAM).
qThe RAM displays the lowest level of both the WBS and the OBS.
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Responsibility Assignment Matrix (RAM)
Responsibility Assignment Matrix
Responsibility Assignment Matrix
CO NC
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/T IE
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PL UM
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RAM
Performing Dept. Manager
Pour Foundation
1.1.1.1 Install Patio
1.1.1.2
Pour Stairway 1.1.1.3
Frame Exterior Walls
1.1.2.1
Frame Interior Walls
1.1.2.2
Install Roofing Trusse 1.1.2.3
Install Water Lines
1.1.3.1
Install Gas Lines
1.1.3.2
Install B/K Fixtures 1.1.3.3
CONCRETE DEPT 6010 Manning X X X MASONRY DEPT 6020 Greams X TEST DEPT 6030 Neumann X X X CARPENTRY DEPT 5010 Sites X X X ROOFING DEPT 5020 Taylor X DRYWALL DEPT 5030 Smith X WIRING DEPT 4010 Johnson HOOKUP/TIE-IN DEPT 4020 Ottis WATER/SEWER DEPT 3010 Wells X X GAS DEPT 3020 Oriely X X
1.1.3 PLUMBINGCONCRETE
1.1.1 FRAMING
1.1.2
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RAM (with hours/dollars)
Performing Dept. Manager
Pour Foundation
1.1.1.1 Install Patio
1.1.1.2
Pour Stairway 1.1.1.3
Frame Exterior Walls
1.1.2.1
Frame Interior Walls
1.1.2.2
Install Roofing Trusse 1.1.2.3
Install Water Lines
1.1.3.1
Install Gas Lines
1.1.3.2
Install B/K Fixtures 1.1.3.3
CONCRETE DEPT 6010 Manning 200 125 85 MASONRY DEPT 6020 Greams 50 TEST DEPT 6030 Neumann 20 10 5 CARPENTRY DEPT 5010 Sites 300 250 175 ROOFING DEPT 5020 Taylor 100 DRYWALL DEPT 5030 Smith 275 WIRING DEPT 4010 Johnson HOOKUP/TIE-IN DEPT 4020 Ottis WATER/SEWER DEPT 3010 Wells 100 15 GAS DEPT 3020 Oriely 125 25
1.1.3 PLUMBINGCONCRETE
1.1.1 FRAMING
1.1.2
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SUCCESS CRITERIA (1/2):
• WBS Dictionary is a narrative description of the lowest level for each WBS element
• The key to a good WBS and WBS Dictionary is the engagement of project team members to comprehensively identify and discuss activities for the project.
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SUCCESS CRITERIA (2/2):
• A Project Manager must ensure that all the work that needs to be accomplished for the project is contained within the WBS Dictionary and is understood by team members.
• All work should have clearly defined duration, resources, dependencies, and level of effort.
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More on the Work Breakdown Structure and Other Aids
• RACI Matrix is a table • Project tasks derived from the WBS listed
in rows and departments and individuals in the columns
• Helps organize the project team
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The RACI Matrix
Figure 3-5
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The Design Structure Matrix • The Design Structure Matrix (DSM) can address
the issue of information flow as well as precedence relationships of tasks
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Example DSM for Project with Six Activities
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Agile Project Management
• Lean management techniques applied to project management to lower costs, improve project outcomes, and reduce project completion times
• Projects completed in stages of 1 to 4 weeks
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Comparison of Agile Project Management and Traditional Waterfall Approach
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Benefits of Agile Project Management
• Better project outcomes • Increased customer satisfaction • Improve morale of project team members • Increased collaboration and project
visibility
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Copyright Copyright © 2016 John Wiley & Sons, Inc.
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