projectplanningandcontrol-120331060550-phpapp02
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Project Planning and Control
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What is a project plan?
A project plan is a model of the process that theproject team intends to follow to realise the project
objectives. It brings together a number of importantaspects of this process including its scope, timing,cost, and associated risks.
The project plan can be viewed as a type ofcontract between the project team members andother stakeholders. It defines the process by whichthe objectives will be achieved, and theresponsibilities in carrying out this process.
Project plans also underpin a number of other key
project management functions including estimatingand forecasting, options analysis and decision-making, and performance monitoring and control.
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Who is responsible for planning?
Everyone in the project team should be
involved in developing the plan. Itshould be a collaborative effort.
The project manager should provide
leadership in this area but may delegatesome of the administrative aspects and
detailed analysis to a project support
role. On larger projects there may be one or
more dedicated planners.
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What are the benefits of planning?
It is more likely to lead to success and
is more cost-effective than a just do itapproach.
It develops greater mutual
understanding and more commitment toachieving the objectives within theproject team.
It provides an early warning system
so that problems are identified whilethere is still time to do something aboutthem.
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Key elements of a plan
Products What products must the projectdeliver? What are the quality requirementsassociated with the products?
Activities What activities are needed todeliver the products?
Resources What resources are needed tocarry out the activities?
Schedule In what sequence should we carryout the activities? How long will the activities
take to complete? Are the required resourcesavailable? How long will the project take overall?
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Budget What are the time-phased
resource requirements and financial
costs? How much will the project costoverall?
Risks Are we taking unnecessary risks?
Is the level of risk exposurecommensurate with the risk appetite? Are
there any opportunities that could be
exploited? Assumptions What are the underlying
assumptions associated with the plan?
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The planning process:
What is the process for developing aplan?
There are four key stages in developing arobust plan:
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STAGE 1
Identify, structure and define the products
needed to achieve the project objectives.
Break down the work needed to deliver the
products into discrete work packages.
Define the responsibilities of the
individuals or teams who will deliver the
work packages.
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STAGE 2
Identify the activities and resources
needed to deliver the work packages.Construct a schedule that takes account ofthe logical dependencies betweenactivities, and the availability of resources.
STAGE 3
Estimate the quantity of resources andfinancial costs associated with each work
package, and use this information inconjunction with the schedule to developtime-phased budgets.
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STAGE 4
Identify and analyse the risks associated
with each work package and evaluate arange of options for handling them. Select
the most cost-effective combination of risk
management actions and incorporate
them into the plan.
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Stage 1 Defining scope andresponsibilities
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Objectives
To ensure that all the work and productsneeded to achieve the project objectivesare included in the plan.
To develop a hierarchical framework for
integrating the key planning and controlfunctions (scope, quality, cost, time, risk)at different levels of management.
To specify the organisation andresponsibilities for managing the work anddelivering the products.
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Fundamental principles:
Break down the project work into cohesive
work packages Define the required results (i.e., the
products) before considering how to
achieve them. Encourage collaborative planning and
commitment to achieving results by
negotiating and agreeing responsibilities atan early stage.
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Process description
Identify and structure the products needed to achieve theproject objectives using a Product Breakdown Structure
(PBS). Define the products and specify their purpose,quality requirements and acceptance criteria, usingProduct Descriptions (PD).
Break down the work needed to deliver the products intodiscrete work packages using a Work BreakdownStructure (WBS). Define the work packages and specifytheir products, quality requirements, acceptance criteria,assumptions, risks, and opportunities, using WorkPackage Descriptions (WPD).
Specify the organisation that will carry out and managethe work contained in the WBS, using an Organisational
Breakdown Structure (OBS). Define the responsibilitiesof individuals or teams in the OBS (with respect toelements of the WBS) using a Responsibility AssignmentMatrix (RAM).
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Stage 2 Scheduling and time/resourceanalysis
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Objectives
To identify the activities needed to deliver
each work package, and sequence them
according to their logical dependencies.
To estimate the time and resources
needed to carry out the activities in the
specified sequence.
To construct a schedule that takes
account of logical dependencies andresource availability.
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Fundamental principles:
The time and resources needed to
complete each activity usually depend onthe sequence in which the activities arecarried out.
Since the time and resources needed tocomplete an activity are usuallyinterdependent, it makes sense toestimate both of these at the same time.
Scheduling must take account of resourceavailability.
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Process description
Identify the activities needed to deliver each workpackage. Also identify any key events (milestones)
associated with the delivery of products, importantdecisions, or external dependencies. Sequence theactivities and milestones according to their logicaldependencies, to create an activity network.
Estimate the time and resources needed to completeeach activity and record the underlying assumptions as aBasis of Estimate (BoE).
Develop an initial schedule that takes account of thelogical dependencies between activities. Calculate theTotal Float for each activity and identify the CriticalPath(s). If the initial schedule does not meet the required
timescales then investigate alternative schedules orconsider making tradeoffs. Analyse the time-phasedresource requirements and, if necessary, adjust theschedule to take account of resource availability or toimprove resource utilisation.
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Stage 3 Cost estimating andbudgeting
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Objectives
To develop a hierarchical framework for
planning and controlling resourceconsumption and financial costs.
To estimate the quantities and financial
costs of the resources needed to delivereach work package.
To develop time-phased budgets as a
basis for performance monitoring andcontrol.
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Fundamental principles
Since budgets are normally constrained,we need to monitor actual costs againstplanned costs on a regular basis to ensurethat timely corrective action can be taken if
there is a significant variance. Making good progress against the
schedule is often not enough to guaranteesuccess. It is also important to monitor the
planned and actual resource consumption(or financial costs) in relation to theprogress made.
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Stage 4 Risk analysis and response
planning
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Objectives
To identify the risks associated with each
work package.
To determine the overall risk exposure and
the contribution of individual risks.
To prioritise risks for further management.
To develop cost-effective risk
management actions (responses) and
incorporate them into the plan.
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Fundamental principles:
Once the plan has been developed it
should still be considered a draft until itsrisk content has been analysed. Thisanalysis may lead to the plan being
modified to include risk managementactions.
Plans should be risk-efficient (i.e., shouldinclude no more risk than is necessary to
provide a given level of return), and therisk exposure should be commensuratewith the risk appetite.
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Monitoring and control
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Objectives - Fundamental
principles
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To inform decision-making processes at alllevels in the organisation.
Apply the principles of closed-loop control tomonitor project in the organisation, and to takeany corrective action. To review theperformance against the plan at regularintervals, and needed corrective actions to
ensure that objectives are achieved. Take anycorrective action needed to achieve the plan
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To identify problems and emergent risksearly enough objectives while there is still
time to do something about them. Monitor trends in performance over aperiod of time as the project progresses
To communicate regular progress to the
project team and other stakeholders aswell as the spot performance withrespect to an activity in order thatconfidence and baseline is maintained.
This allows us to distinguish betweencommitment and reality and the focustowards the project is maintained
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Project control cycle
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Identify the objectives and constraints, and develop aplan. Review and baseline the plan. Obtain authorisationto proceed.
Do some work. Measure performance and update the original estimatesand forecasts. Update the schedule and budget forecaststo take account of the latest information.
Investigate the causes of any significant variations with
respect to the baseline. Review the associated risks andassumptions. If necessary, develop options for takingcorrective action.
Agree on any corrective action that is required andupdate the plans (via Change Control if the baseline ischanged).
Confirm that the objectives have been achieved and thatthe required products have been delivered.
Obtain formal sign-off if appropriate.
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Performance monitoring
techniques
Schedule analysis Monitor variations in the forecast schedulewith respect to the baseline, as well as changes to the criticalpath(s) and remaining float of activities.
Budget analysis Monitor variations in the forecast budget withrespect to the baseline.
Milestone trend charts Monitor the forecast dates and actualdates of key milestones as a function of time.
Earned Value Management (EVM)Monitor earned - value andactual cost against planned value/cost
Risk analysisMonitor confidence values or probabilitydistributions associated with key elements of the schedule orbudget, as a function of time.
Buffer management fever charts Monitor the consumption ofschedule and budget contingency buffers as a function of time.
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Techniques for planning larger projects
Staged planning The project is split into a number ofdiscrete stages. An outline plan is developed for theproject as a whole, together with more detailed plans for
each stage. The plans for each stage are usuallydeveloped towards the end of the preceding stage. Thisapproach is a useful way of limiting risk exposure whenthere is uncertainty about the requirements, the work tobe performed, the available resources, or the project
environment. Hierarchical planning Planning and control is carried
out in a hierarchical fashion so that lower level plans andtheir associated control systems are nested withinelements of the higher-level plans.
Rolling Wave planning Only the near-term workpackages are planned in detail, while the far-term workpackages (sometimes called Planning Packages) areplanned in outline only.
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Principles of effective planning and control
Divide-and-conquer Manage complexity by breakingdown the various elements of the plan in a structuredway. But dont forget to keep track of the dependenciesbetween elements as you go.
Integrated approachDont plan and control thevarious project functions in isolation (e.g., scope, quality,cost, time, risk), as they are all interdependent. Instead,adopt a more integrated approach by bringing themtogether at key control points on the WBS (e.g., workpackages or control accounts).
Keep it simple, systematically Only add more detailto the plan where the cost of doing so and the increasedcomplexity it brings with it is justified by the amount of
information it provides. Team collaborationDont forget that the plan
represents the teams vision for achieving the objectives.So make sure they are involved in its development andany subsequent changes during the monitoring and
control process.
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RECAP Activity A task, operation, or process consuming time
and possibly other resources.
Baseline A snapshot of a plan (or element of a plan)that is used as a point of reference.
Budget The agreed cost or quantification of resourcesneeded to complete an activity by a set time.
Critical Path A sequence of activities through anactivity network where each activity in the sequence haszero or negative total float.
Duration The estimated or actual time required tocomplete an activity.
Milestone A key event selected for its importance inthe project.
Product The measurable output of an activity.
Resource Anything other than time that is necessaryfor carrying out an activity.