Project Planning and Management PDF

Project Planning and Management Constance Mulenga – Chirwa MPH, MBA, BSc EH, IPGDMS, Dip. LEM, Dip. EH/MOF, LDC  Project Planning  Project planning consist of two main stages Risk Management and Project Scheduling  The goal of risk management is to identify project ris...

Project Planning and Management Constance Mulenga – Chirwa MPH, MBA, BSc EH, IPGDMS, Dip. LEM, Dip. EH/MOF, LDC  Project Planning  Project planning consist of two main stages Risk Management and Project Scheduling  The goal of risk management is to identify project risks and take necessary precautions  Project scheduling is to make a detailed schedule of all tasks that need to be performed, including specific time frames and resource allocation. Risk Management  Uncertainty about the schedule, costs, and quality of project outcomes  Risk management deals with uncertainties emanating from:  Known unknowns: these are already identified potential risks and its easy to prepare for these  Unknown unknowns: these relates to problems that are not anticipated and still there is need to plan for the unexpected.  Throughout project management risks are managed, however, it is inevitable that a specific plan and assigned activities are performed to manage risks on the project. Risk Management Framework The 5 Steps 1. Identify Risks: all factors that threaten the project objectives 2. Analyze and prioritize: in terms of likelihood of occurrence and possible damage 3. Develop a response plan: strategies for minimizing the damage or probability of occurrence. 4. Establish contingency funds: to set aside additional funding for unknown and known risks. 5. Ensure Continuous risk management: to implement strategies and monitor the effects of these changes on the project. Step 1-Identify Risks:  Organizing brainstorming sessions with stakeholders to gather potential risks.  Listing possible project risks as identified by stakeholders  Structured interviews are also another approach  From lessons learnt from other projects: from end of project report  Also during the process of project planning itself: during estimations of schedules and budgets. Activities and tasks which seem hard often imply a certain level of uncertainty which would mean a possibility of project risks.  The goal of step 1 is just risk identification Step 2 – Analyze and Prioritize Risks  Analyzing the importance of risks in terms of likelihood of occurrence and the impact they are likely to pose  Eliminating risks which are not worth worrying about, then sort the remaining in the order of importance  Briefly describing and analyzing the remaining possible risks detailing the conditions which would cause uncertainty as well as the consequences or possible negative outcomes.  This could also include consequences in terms of costs to the project, schedule and damage to the project  There should also be an estimation of the probability of occurrence of each risk identified. In terms of difficulties to estimate that, an ordinal scale with say three categories could be used (i.e. from 1 to 3, representing low, medium and high probability or impact, respectively) Step 3 – develop response Plans  Firstly, Identify those risks that are within the control of the project team and those that are not.  There are 5 ways of dealing with the identified risks: 1. Accept the risks, implying that you understand the risk and decide to do nothing. This is common practice when the impact or probability is low 2. Avoid the risk, either by choosing not to do specific parts of the project or by selecting lower risk options for meeting the project goals. 3. Contingency plans, this is in a situation where avoidance and ignoring of the risk cannot be done, a fallback plan can be made to reduce the negative impact when the risk occurs. However, this requires continuous monitoring of the risks. 4. Transfer the risk, this is to do with paying insurance 5. Mitigate the risk, a strategy to reduce the risk and more particularly the probability that the risk occurs, by taking extra care and actions. Step 4 – Establish Contingency & Reserve Funds  After determining strategies for risk management, financial reserves are set aside for implementation.  The reserve funds are utilized for the known unknowns, whereas, unknown unknowns (or the un-anticipated) are catered for by use management reserves.  In short, risk management only deals with anticipated risks. Step 5 – Continuous Risk Management  Initial plan based on all known information at the start of project  As project progresses, more information is gained on potential risks, therefore there is need for continuous risk management effort and this should include:  Monitoring known risks  Checking for new risks  Repeating the risk management framework for the newly identified risks. Project Scheduling Project Characteristics  Despite the many diversities, projects share the following characteristics:  Unique in nature  Have definite objectives or goals to achieve  Requires a set of objectives  Have a specific timeframe for completion with a definite start and finish  Involves risk and uncertainty  Requires cross-functional and multidisciplinary approach Project Performance Dimensions 3 Major Dimensions  Scope  Time and  Resource (cost)  Parameters are interrelated and interactive  The relationship generally represented as an equilateral triangle. Time Cost scope  Project Performance Dimensions cont’d  Any change in any one of the dimensions would affect the other  For instance, if the scope of the project is enlarged, it would require more time for completion and the cost would also go up. If time is reduced, the cost and scope would also be required to reduce.  Successful completion of a project requires accomplishment of specific goals within a scheduled time and budget.  In recent years, stakeholder satisfaction have been added as another dimension  However, another school of management argues that it is an inherent part of the scope of the project  Therefore, the performance of a project is measured by the degree to which the 3 parameters (scope, time and cost) are achieved.  It is also known as the “Quality triangle” in management literature.  Project Life Cycle  From conception to completion  Passes through various phases  Typical project consist of four phases Conceptualization Planning Execution, and Termination 1. Conceptualization Phase This includes:  Conception phase which starts with an idea  Identification of product or service  Pre-feasibility, feasibility studies and appraisals and approvals  The project idea is conceptualized with considerations of all possible alternatives for achieving the project objectives  As idea becomes established, a proposal is developed setting out rationale, method, estimated costs, benefits and other details for appraisal of the stakeholders  After reaching consensus on the proposal, the feasibility dimensions are analyzed in details.  2. Planning Phase  Project structure planned based on appraisal and approvals  Detailed plans for activities, finances and other resources are developed and integrated ino the quality parameters  Major tasks to be performed include:  Identification of activities and their sequencing  Time frame for execution  Estimation and budgeting  Staffing  A Detailed Project Report (DPR) specifying several aspects of the project is finalized to facilitate execution during this phase. 3. Execution Phase  Plan put into operation  Each activity is monitored, controlled and coordinated in order to achieve project objectives  Significant activities in this phase are:  Communicating with stakeholders  Reviewing progress made  Monitoring cost and time  Controlling quality, and  Managing changes 4. Termination Phase  This phase marks the completion of the project during which the agreed deliverables are installed and the project is completed with arrangements for follow-up and evaluation.