principles of project management module 3 project planning

Principles of Project Management

Module 3

Project Planning

All rights reserved. Colm Toolan, Business Architect. 2001 - 2005

Project Planning

• Planning is a pre-emptive [vorweggenommene] consideration of future activities

• Based on the “five friends, who taught me all I know” [W-Fragen]

• Allows consideration of alternatives• Mistakes are inexpensive


Questions, PjMt Tasks & Deliverables I• What needs to be done?

• structure project • Work Breakdown Structure [Projektstrukturplan]• Work Packages [Arbeitspakete]

• Who does it?• determine resources

• refined Work Packages

• What are the most important events?• define milestones

• Milestone Plan [Meilensteinplan]


Questions, PjMt Tasks & Deliverables II• When must the work be done?

• determine sequences• determine interdependencies

• Time Line (aka Project Plan) [Terminplan]• Gantt Chart [Balkanplan]• PERT Diagram [Netzplan]

• What effort and costs are involved?• determine effort and costs

• Resource Plan [Ressourcenplan]• Cost Plan [Kostenplan] - against Budget


Questions, PjMt Tasks & Deliverables III• How can the project goals be met?

• refine plan• balance time, resources and costs

• optimised plan [Planoptimierung]

• Where are the risks?• analyse risks

• Risk Analysis [Risikoanalyse]• including mitigation strategy


Summary - PjMt Tasks

Question Task DeliverableWhat needs to be done? Structure project Work Breakdown Structure (WBS)Who does it? Plan resources Work Packages (AP)What are the important deliverables? Define milestones Milestone Plan (MSP)When must the work be done? Determine sequences Time Line (aka Project Plan)What effort and costs are involved?

Determine effort and costs Resouce Plan

How can goals be met? Refine plan Optimised PlanWhere are the risks? Analyse risks Risk Analysis


1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18Week

GANTT Chart

Task 1

Task 2

Task 3

Task 4

Task 5

Task 6

Mary Tim

Mary

Tim

John

Tim

Charlie

Demo

CeBIT

Tim

John


PERT Diagram

B C

HA E

F

D

G

Task ERes: 1Dur: 8

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3


Work Breakdown Structure

• Important management and analysis tool

• Breaks project into manageable chunks• sub-projects• tasks, task groups

• Reduces complexity, eases planning

• Facilitates completeness checks

• Basis for (later) optimisation

• Concerned only with subject matter


Example: WBSProject

Supporting WPs

Sub-Project B

Sub-Project C

Sub-Project A

WP A1

WP A2

WP A3

WP A4

WP B1

WP B2

WP B3

WP C1

WP C2

WP C2.1

WP C2.2

Quality Assurance

Change Management

Project Management

Direct WPs


WBS Methods

• Top-Down• from overview (Project Goal) to detail (WP)• commonest method• detail enhanced in the process

• Bottom-Up• from detail (WP) to overview (Project Goal)• useful when details known, pre-determined• cross-check - replacing existing systems

• Brain-Storming, Mind-Mapping etc


Have you read …?

• Business Mind Mapping(German)Tony Buzan, Vanda North; ISBN 3-7064-0577-6

• MindManager Student Edition (Software)• Creative Thinking and Brainstorming

J Geoffery Rawlinson; ISBN 0-7045-0543-6

• Rapid Problem Solving with Post-It® NotesDavid Straker; ISBN 1-55561-142-7

• The Thinker’s ToolkitMorgan D Jones; ISBN 0-8129-2808-3


House

Implementation AcceptancePlanning

House

Ground Floor

RoofCeller

House

ImplementationPlanning

Design Structure Celler Roof

House

Masonry CarpentryEarthworks

WBS Principles

• Object / Artefact based

• Activity based

• Phase based

• Mixed Forms


Work Packages (WP)

• Tasks, events, activities

• Basis for all (project) planning

• Lowest level of WBS

• Someone is responsible for each WP- ensures that the agreed deliverables are

produced within the agreed cost and time constraints


WP Definition• Project name and number• Project Manager’s name• Work Package number (hierarchical)• Work Package name• Person responsible for WP• Cost centre• WP goal(s) and deliverables• Pre-requisites (preceding WPs)• Space for signatures (WP ~ contract)

Particularly important for matrix management - shared responsibility between PjM and Line Management


WP - Sample Definition

Project Number: 225 Project: B2 Series Project Manager: John MurphyWP-Number: 4.2.5 WP-Name: Test Production Run WP Responsibility: Tom O'DwyerCost Centre: 75

Goals & Deliverables:

Pre-Requisites:

Approved / Agreed Date Signature CommentProject Manager:WP Responibility:

# Production workers are trained in the use of the production equipment# The 0 series (10 units) of the model B2 is produced# The start-up problems have been resolved# Changes (setup and processes) have been documented

# The production line is completed (WP 3.5.3)# The production material is available and prepared (WP 3.5.9)


Milestone Plan

• Provides quick and quality overview of project

• Provides structure by determining dates for specific (sub) goals

• Reviewing milestones (is the goal achieved?) provides project status


Milestones

• Important events or deliverables• goals, sub goals, completion of sub projects

that must be achieved within the project

• Motivation factor for team members• success factor - goal/date achieved• (positive) stress factor - getting it done

• Often result in monetary reward• external projects - payment goal• project team - bonus payments


Milestone Definition• Project name and number• Project Manager’s name• Milestone number (hierarchical)• Milestone name• Person responsible for milestone• Milestone definition and deliverables• Pre-requisites (preceding WPs)• Space for signatures (Milestone is often

contract event ~ payment)

Particularly important for matrix management - shared responsibility between PjM and Line Management


Project Number: 225 Project: B2 Series Project Manager: John MurphyMilestone-Number: 4.3.1 MS-Name: WP Responsibility: Tom O'Dwyer

Cost Centre: 75

Goals & Deliverables:Milestone Date:Pre-Requisites:

Approved / Agreed Date Signature CommentProject Manager:WP Responibility:

B2 Production commenced

Production commenced with 35 Units "B2" / day26th May 2002# The production line is completed (WP 3.5.3)# Production line staff are trained (WP 3.5.5)# The production material is available and prepared (WP 3.5.9)

Milestone - Sample Def.

Date !


Sequence Planning

• Precedes the actual project plan

• Determines the sequence in which work must be done

• Can be diagrammed as• Histogram (Balken Diagramm) ~ Gantt• Network Diagram (Netzplan) ~ PERT

• “As much detail as necessary, as little as possible”


Gantt Chart

• Easy to read

• Needs precision

• Needs detail

• Does not normally show dependencies

• Add dependencies (MS Project) to really understand what’s happening

1 2 3 4 5 6 7 8 9 10

11

12

13

14

15

16

17

18

Week

Task 1

Task 2

Task 3

Task 4

Task 5

Task 6

Mary Tim

Mary

Tim

John

Tim

Charlie

Demo

CeBIT

Tim

John


Network Diagram

• More precision

• Better suited to large projects

• Requires PjMt Software

• Needs experience, feeling for appropriate level of detail

• Project team often have difficulty understanding PERT Diagrams

Task ERes: 1Dur: 8

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3


Types of Network Diagrams

• Critical Path Method (CPM)• Tasks and arrows net [Vorgangspfeilnetz]

• Program Evaluation and Review Technique (PERT)• Event node net [Ereignisknotennetz]

• Metra Potential Method (MPM)• Task node net [Vorgangknotennetz]

• Methodology Gurus !


Finally - MS Project

Milestone with Date

Sub ProjectTasks

Dependencies

Project Duration

Time Line

WBS


Dependency Rules

• The first WP has no predecessor [Vorgänger]

• The last WP has no successor [Nachfolger]

• All other WPs have at least one predecessor and one successor

• Left to right (like Top-Down)

• Right to left (like Bottom-UP), as check


Creating the Network I

A1.1

A1.2

A1.3

A1.4

A2.1

A2.2

A2.3

A3.1

A3.2

B1.1

B1.2

B1.3


Creating the Network II

A1.1

A1.2

A1.3

A1.4

A2.1

A2.2

A2.3

A3.1

A3.2

B1.1

B1.2

B1.3


Dependencies I

A B

A

B

End to Start [Ende-Anfang][Normalfolge]


Dependencies II

A B

A

B

Start to Start [Anfang-Anfang][Anfangsfolge]


Dependencies III

A B

A

B

End to End [Ende-Ende][Endfolge]


Dependencies IV

A B

A

B

Start to End [Anfang-Ende][Sprungfolge]

?


Dependencies V

A B

A

B+

Time Lags [Zeitverschiebungen]

+/- 5d

+5d-5d

B-


Dependencies - Summary

• Ende-Anfang (EA)

• Anfang-Anfang (AA)

• Ende-Ende (EE)

• Anfang-Ende (AE)

• +/- Zeitverschiebung

• Anfang B gekoppelt an Ende A

• Anfang B gekoppelt an Anfang A

• Ende B gekoppelt an Ende A

• Ende B gekoppelt an Anfang A


• As early as possible• End no earlier than• End no later than• As late as possible• Start not earlier than• Start not later than

• Must end by• Must start by

WP Time Constraints

• Flexible Constraints

• Fixed Constraints

• Beware the mouse in MSP Gantt Charts !


Buffers and Puffers• Latest Start minus Earliest Start• Latest Finish minus Earliest Finish• Float (Slack) = one of the above

DurationEarliest Start Date

Earliest Finish Date

Duration

Latest Start Date

Latest Finish Date

Float

Float


Critical Tasks

• Tasks where the earliest and latest dates are identical (ES=LS or EF=LF)

• Tasks with no float or slack

• Delays directly effect project completion

• Critical Path is sequence of critical tasks

• Float and (therefore) critical tasks are calculated by the Front Pass, Back Pass


Task ERes: 1Dur: 8

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3

ES: 8/11

EF: 12/11Project begins 1/11,therefore Earliest Start for Task A is 1/11 Task H still cannot be

calculated,as all preceding tasks have not been calculated.Earliest Finish of Task E is noted

Task A finishes 3/11 (start 1/11, 3 days duration),therefore Earliest Start for Task F is 4/11

Task C finishes 10/11,(Start 9/11, 2 days duration)therefore Earliest Start for Task D is 11/11

Task H cannot be calculated,as all preceding tasks have not been calculated.Earliest Finish of Task D is noted

Task B finishes 8/11,(Start 4/11, 5 days duration)therefore Earliest Start for Task E is 9/11

Task A finishes 3/11 (start 1/11, 3 days duration),therefore Earliest Start for Task B is 4/11

CPM - Front Pass I

ES: 1/11

ES: 4/11 ES: 9/11

Task B finishes 8/11,(Start 4/11, 5 days duration)therefore Earliest Start for Task C is 9/11

ES: 11/11 EF: 17/11

ES: 9/11

EF: 16/11

ES: 4/11

Task F finishes 7/11,(Start 4/11, 4 days duration)therefore Earliest Start for Task G is 8/11.

In order to calculate ES for Task H, The EF is also noted


Task ERes: 1Dur: 8

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3

CPM - Front Pass II

ES: 1/11

ES: 4/11 ES: 9/11 ES: 11/11 EF: 17/11

ES: 9/11

EF: 16/11

ES: 4/11 ES: 8/11

EF: 12/11

Task H cannot commence before all preceding tasks are completed

Task D has an Early Finish date of 17/11Task E has an EF of 16/11Task G has an EF of 12/11

Therefore, the earliest start date (ES) for Task H is 18/11

The EF date for Task H is 20/11(ES 18/11 + 3 days duration)

The EF for the last task is also the earliest finish date (EF) for the project

EF: 20/11 ES: 18/11

Project Duration: 1/11- 20/11


Task ERes: 1Dur: 8

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3

CPM - Back Pass I

ES: 1/11

ES: 4/11 ES: 9/11 ES: 11/11

ES: 9/11

ES: 4/11 ES: 8/11

In the Back Pass, the same methodology is applied to calculate the latest possible dates by which activities can finish, without delaying the finish date of the project.

Task H is the last task in the project.

If Task H can be completed by the EF date, then there will be no delay to the project.

Therefore the EF of Task H can be used as a latest finish date (LF) for Task H, without impairing project completion

EF: 20/11

Project Duration: 1/11- 20/11

LF: 20/11ES: 18/11


Task ERes: 1Dur: 8

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3

CPM - Back Pass II

LF: 10/11LF: 8/11

LF: 12/11

ES: 1/11

ES: 4/11 ES: 9/11 ES: 11/11

ES: 9/11

ES: 4/11 ES: 8/11

LF: 20/11ES: 18/11

The latest start date (LS) for Task H is 18/11 (LF 20/11, less 3 days duration), therefore Latest Finish for Tasks D, E and G is 17/11, if project completion is not to be impaired

LF: 17/11

LF: 17/11

LF: 17/11

Latest Finish for Task B must reflect the earlier of the latest start dates of its succeeding Tasks:LS Task C is 9/11 (LF - 2 days)LS Task E is 10/11 (LF - 8 days).

Therefore LF Task B is 8/11

LS Task G is 13/11 (LF - 5 days),therefore LF Task F is 12/11

LF: 3/11

Latest Finish for Task A must reflect the earlier of the latest start dates of its succeeding Tasks:LS Task B is 4/11 (LF - 5 days)LS Task E is 9/11 (LF - 4 days).

Therefore LF Task A is 3/11

The latest start date for Task A (and therefore the project) is 1/11 if the completion date is not to be impaired

LS for Task D is 11/11,(LF 17/11, less 7 days duration)therefore Latest Finish for Task C is 10/11


Task ERes: 1Dur: 8

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3

CPM - Critical Path I

LF: 10/11LF: 8/11

LF: 12/11

ES: 1/11

ES: 4/11 ES: 9/11 ES: 11/11

ES: 9/11

ES: 4/11 ES: 8/11

LF: 20/11ES: 18/11

LF: 17/11

LF: 17/11

LF: 17/11

LF: 3/11Float

0

Float = LF - (ES + duration)

Task A3/11 - (1/11 + 3 days)3/11 - (3/11)

Float = 0

Float0

Float0

Float0

Float1

Float5

Float5

Float0


CPM - Critical Path II

Task ERes: 1Dur: 8

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3

LF: 10/11LF: 8/11

LF: 12/11

ES: 1/11

ES: 4/11 ES: 9/11 ES: 11/11

ES: 9/11

ES: 4/11 ES: 8/11

LF: 20/11ES: 18/11

LF: 17/11

LF: 17/11

LF: 17/11

LF: 3/11Float

0

Float0

Float0

Float0

Float1

Float5

Float5

Float0

Task ARes: 2Dur: 3

ES: 1/11LF: 3/11

Float0

Task BRes: 2Dur: 5

LF: 8/11ES: 4/11 Float

0

Task CRes: 1Dur: 2

LF: 10/11ES: 9/11 Float

0

Task DRes: 1Dur: 7

ES: 11/11LF: 17/11

Float0

Task HRes: 3Dur: 3

LF: 20/11ES: 18/11 Float

0


CPM - Dynamic CP I

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3

LF: 10/11LF: 8/11

LF: 12/11

ES: 1/11

ES: 4/11 ES: 9/11 ES: 11/11

ES: 9/11

ES: 4/11 ES: 8/11

LF: 20/11ES: 18/11

LF: 17/11

LF: 17/11

LF: 17/11

LF: 3/11Float

0

Float0

Float0

Float0

Float1

Float5

Float5

Float0

Task ERes: 1Dur: 8

Task E1Res: 1Dur: 2

ES: 9/11LF: 17/11

Float1

Task E1Res: 1Dur: 2

ES: 17/11LF: 18/11

Float0

ES: 19/11LF: 21/11

LF: 18/11Float

1

LF: 18/11Float

6

LF: 16/11Float

0

LF: 13/11Float

6

LF: 11/11Float

1LF: 8/11Float

0

LF: 3/11Float

0


CPM - Dynamic CP II

Task HRes: 3Dur: 3

Task GRes: 2Dur: 5

Task FRes: 2Dur: 4

Task DRes: 1Dur: 7

Task CRes: 1Dur: 2

Task BRes: 2Dur: 5

Task ARes: 2Dur: 3

LF: 10/11LF: 8/11

LF: 12/11

ES: 1/11

ES: 4/11 ES: 9/11 ES: 11/11

ES: 9/11

ES: 4/11 ES: 8/11

LF: 20/11ES: 18/11

LF: 17/11

LF: 17/11

LF: 17/11

LF: 3/11Float

0

Float0

Float0

Float0

Float1

Float5

Float5

Task ERes: 1Dur: 8

Task E1Res: 1Dur: 2

ES: 17/11LF: 18/11

Float0

ES: 19/11LF: 21/11

LF: 18/11Float

1

LF: 18/11Float

6

LF: 16/11Float

0

LF: 13/11Float

6

LF: 11/11Float

1LF: 8/11Float

0

LF: 3/11Float

0Float

0

Task E1Res: 1Dur: 2

ES: 17/11LF: 18/11

Float0

Task HRes: 3Dur: 3

Float0

ES: 19/11LF: 21/11

ES: 9/11

Task ERes: 1Dur: 8

LF: 16/11Float

0

Task BRes: 2Dur: 5

ES: 4/11LF: 8/11

Float0

Task ARes: 2Dur: 3

ES: 1/11LF: 3/11

Float0


Resource Planning I• Distinguish between effort [Aufwand] and duration [Dauer]• Remember this? “If it takes 5 men 10 days to dig a hole, how long will 10 men

need?”

Duration10 Men

5 MenDuration

Duration

Fixed Effort e.g. digging a hole

DurationDuration

Duration

Fixed Duration e.g. Test under load


Resource Planning II

• Work Packages as basis

• WP Owner estimates effort, resources• Best guess (based on experience, tools)• Ask the people doing the work• Include testing, quality and documentation!• People-Effort in person-days, person-hours• Equipment in units or %age usage

• Duration = Effort/Resources• in weeks, days, hours


Resource Planning III

• Tasks, activities within WP are listed

• Resources (duration, number) defined

Project Number: 225 Project: B2 Series Project Manager: John MurphyWP-Number: 4.2.5 WP-Name: Test Production Run WP Responsibility: Tom O'DwyerCost Centre: 75

Resource Resource Allocation Resource Usage Duration Production Manager 0,5 50% 10Production Workers 5 500% 4QM Manager 1 100% 2etc etc

Total Effort: Duration: 10 Days27 Person-Days

Effort (PD)5

202

Allocation

Duration

WP Duration


Insurance

• Not (Yet) Allocated Resources (NYA)• Time and Money for items not yet recognised• Separate Task• Include in plan and in reporting• Reduce (as needed) by allocating resources

to other tasks and activities• Allows isolated budget overruns without

overall project overrun• Do not waste these not yet allocated

resources- if not needed, deliver the project early!


Example: Not yet allocatedProposalTask Budget

(Days)A 20B 20C 20Test, Bug Fixing 20Project Mngt 20

100Contingency (10%) 10

110

ExecutionTask Activities Budget (Days)A A1 5

A2 3A3 4A4 3 15

B B1 2B2 8B3 5 15

C C1 10C2 5 15

T Test, Bug Fixing 15 15PM Project Management 20 20NYA Not allocated (20%) 20 20CT Contingency (10%) 10 10

110


Cost Planning

• Detailed cost planning vs. Budget

• Work Packages as basis

• Use accounting/controlling classificationProject Number: 225 Project: B2 Series Project Manager: John Murphy

WP-Number: 4.2.5 WP-Name: Test Production Run WP Responsibility: Tom O'DwyerCost Centre: 75

Cost Classification Number Cost per Day TotalPersonnel 2 500,00 € 1.000,00 €

10 375 3.750,00 € 15 425 6.375,00 €

Equipment 7.000,00 € Tools 2.000,00 €

Material Production Material 500,00 € Travel Subsitence 4 250 1.000,00 €

Total Costs 21.625,00 €

Machinery

ResourcePurchasingO'ConnorDunphy


Optimising the Plan

• Improve on completion date

• Optimise resource usage

• Juggle• Dates

• Concentrate on (dynamic) Critical Path

• Resources• Under utilised resources cost money, over

utilised are less productive and/or sick

• Costs• Replace expense resources with less expensive


Risk Analysis

• Life - and projects - is full of risk!

• Identify risks

• Financial, organisational and technical

• Use WBS to ask• What can possibly go wrong? (Murphy)• What assumptions may be incorrect?• How can risk be avoided? • What would be the effect?• How can effects be minimised?


• Penalty clauses [Konventionalstrafen]

• Customer Insolvency• Increased salaries• Legal changes• Increased supplier

costs

• Planning too optimistic

• Loss / unavailability of staff

• Badly defined requirements

• Delays / overruns

Types of Risk

• Financial Risk

• Organisational Risk

• Technical Risk

• New methods / processes

• New products• New applications• New technologies• Equipment failures


Contact Information

Colm Toolan, Business Architect

Isarweg 35

24146 Kiel

Colm(full stop)toolan(funny symbol)toolan(full stop)de

T: +49 431 7859 - 737 F: -738

M: +49 171 6450 998

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