The following will be discussed in this chapter: The basis of a project plan - the “project charter”, the planning process - overview, the planning process - nuts and bolts, more on the work breakdown structure and other aids, risk management.
ProjectManagementinPractice FifthEdition Chapter3 ProjectActivityandRisk Planning Copyrightâ2014JohnWiley&Sons,Inc 3ư1 TwoExtremesApproachesto Planning ã “Ready, fire, aim” – • • Tom Peters “Paralysis by analysis” There is a happy medium that everyone would like to strike 32 The Basis of a Project Planthe “Project Charter” • • • • Primary function of a project plan is to serve as a roadmap Should include the business case 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 33 Categories of Elements Required in the Project Charter Purpose Objectives Overview Schedules Resource requirements Personnel and stakeholders Risk management Evaluation methods Slide on each 34 Purpose • Business case for the project – – – – – • Strategic reasons for the project Expected profitability Competitive effects Desired scope Any other technical results Intent is to communicate to stakeholders the reasons for the project 35 Objectives • • Another name is project mission statement More detailed description of the… – – – • Scope Deliverables Outcomes Communicate to project team members what will be done to achieve the overall project objectives 36 Overview • • • • • • • Intended for senior management Brief description of project Deliverables Milestones Expected profitability and competitive effects Technological and managerial approaches Agreements with the client or any third party 37 Schedule • • • Summary of schedules and milestones Work breakdown structure (WBS) Time to complete each task 38 Resource Requirements • Estimates of project expenses – • • • • Capital and operating Costs associated with each task Overhead and fixed charges Appropriate account numbers Project budget 39 Personnel and Stakeholders • • • • Stakeholders, sponsor, project manager, and some team members Special skill requirements Necessary training Special legal arrangements – Such as nondisclosure agreements 310 Notes on WBS • Microsoft Project (MSP) will make a WBS list at the touch of a key – • • • But not a treechart 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 318 Extensions of the Everyday WBS • • WBS generally oriented towards deliverables Can be reshaped with some additional data often not included in the WBS • Estimates of resources for each task Estimates of the time for each task Who has responsibility for each task Sequence information for each task Increases it orientation toward planning and administration 319 A Modified WBS for Improving Staff Orientation Table 32 (Partial) 320 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 321 The RACI Matrix Figure 35 322 A WholeBrain Approach to Project Planning • • • Mind mapping is a visual approach that closely mirrors the way the human brain records and stores information In addition to its visual nature, this methodology has the advantage of tapping in to the creative potential of multiple team members Mind mapping is an entertaining approach that helps generate enthusiasm and involvement 323 Sample Mind Map Figure 39 324 Risk Management Risk identification Risk analysis Response to risk 325 Breakdown into Subprocesses Risk management planning Risk identification Qualitative risk analysis Quantitative risk analysis Risk response planning Risk monitoring and control Slide on each 326 Risk Management Planning • • • • Like any other planning process Must ensure that the necessary resources can be applied in a timely manner It is a continuous process The factors that cause uncertainty change over time 327 Risk Identification and Qualitative Risk Analysis Steps 23 often carried out together Scenario analysis • • – – Wellknown method for identifying risk Involves envisioning likely scenarios and resulting outcomes Failure mode and effect analysis (FMEA) • List ways project might fail List consequences and evaluate its severity List cause and likelihood Estimate the ability to detect each failure Calculate the risk priority number Sort the potential failures by their risk priority number 328 Quantitative Risk Analysis • • • • State outcomes as probability distribution and use distributions to evaluate the desirability of certain decisions Objective is to illustrate the risk profile of the outcomes Risk profiles are one factor to consider in making the decision Techniques for analysis include: – – Expected value Simulation 329 Risk Response Planning • • • Deciding on which risks to prepare for and which to ignore Main preparation is a risk response plan Risk response plan includes contingency plans and logic charts detailing what to do – – Contingency plan is a backup for some emergency or unplanned event (“plan B”) Logic chart shows the flow of activities once a backup plan is initiated 330 Risk Monitoring and Control • Monitoring and control are tasks for the parent organization – • • As well as the project Must keep records for future projects Also must continue to search for new risks 331 Copyright Copyright © 2014 John Wiley & Sons, Inc All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make backup copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein 332 ... Breakdown into Subprocesses Risk? ?management? ?planning Risk? ?identification Qualitative? ?risk? ?analysis Quantitative? ?risk? ?analysis Risk? ?response? ?planning Risk? ?monitoring? ?and? ?control Slide on each 326 Risk? ?Management? ?Planning. .. Deciding on which risks to prepare for? ?and? ?which to ignore Main preparation is a? ?risk? ?response plan Risk? ?response plan includes contingency plans? ?and? ? logic charts detailing what to do – – Contingency plan is a backup for some emergency or ... Project? ?tasks derived from the WBS listed in? ?rows? ?and? ?departments? ?and? ?individuals? ?in? ? the columns Helps organize the? ?project? ?team 321 The RACI Matrix Figure 35 322 A WholeBrain Approach to? ?Project? ? Planning • • • Mind mapping is a visual approach that closely