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Project Planning Activities

Lecture 7

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• Project Planning Activities• Project Schedule• Risks Management and Project Feasibility• Financial Calculations• Tangible and Intangible Benefits• Staffing the Project• Launching the Project

Lecturer details

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Project planning (reminder of L6)

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• Review business needs- Use strategic plan documents - Consult key users

- Develop list of expected business benefits

• Identify expected system capabilities (at a general level)• Define scope in terms of requirements

• Create system scope document (3 components: problem description, business benefits, system capabilities)

• Create context diagram for the organisation

Activity 1: Define the problem

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Activity 1: Scope Document example

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Activity 1: Context Diagram example

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• Each project consists of tasks, activities and phases.

• A phase is made up of a group of related activities• An activity is made up of a group of related tasks• A task is a smallest piece of work that is identified, named and scheduled

• The development of a project schedule involves three main steps:

1- Develop work breakdown schedule2- Build a PERT/Gantt chart3- Develop resource requirements and staffing plan

Activity 2: Project Schedule

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Activity 2: work breakdown Example

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Activity 2: Gantt Chart Example

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• Risk management• Organizational and cultural feasibility• Technological feasibility• Schedule feasibility• Resource feasibility•Economic feasibility

- Cost/benefit analysis- Sources of funds (cash flow, long-term capital)

Activity 3: Project feasibility

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3.1 Example of Risk Analysis

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• Cost/benefit analysis Estimate project development costs Estimate operational costs after project Estimate financial benefits based on annual savings and increased revenues Calculate using table of costs and benefits

• Uses net present value (NPV), payback period, return on investment (ROI) techniques

3.2 Economic Feasibility

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3.2 Cost/Benefit Analysis Example

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• Tangible benefits – can be measured or estimated in terms of money• Intangible benefit – can’t be directly measured or estimated in money• In some instance, the intangible benefits far exceed the tangible costs• Ex. Create kurdish learning video, 2002.

Examples of intangible benefits:• Increased levels of service (in ways that cannot be measured)• Increased customer satisfaction (not measurable)

Examples of intangible costs: • Reduced employee moral • Lost productivity (inestimable) • Lost customers or sales (during some period of time)

Tangible and Intangible Benefits

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There are five tasks within this activity:• Develop a resource plan• Identify and request technical staff• Identify and request specific user staff• Organize the project team into work

groups• Conduct preliminary training and team-

building

Activity 4: Staffing the project

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• Scope defined, risks identified, project is feasible, schedule developed, team members identified and ready

• Oversight committee (steering committee) finalized, meet to give go-ahead, and release funds

• Formal announcement made to all involved parties within organization

Activity 5: Launching the project

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End

Thank you

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