Chapter 6: Project Planning

PROJECT PLANNING CHAPTER 6 BY GROUP 4 PROJECT PLANNING 01 Basic Processes of Project Planning 06 Procurement Management 02 Scope Planning 07 Quality Planning 03 Project Schedule Planning 08 Communication Planning...

PROJECT PLANNING CHAPTER 6 BY GROUP 4 PROJECT PLANNING 01 Basic Processes of Project Planning 06 Procurement Management 02 Scope Planning 07 Quality Planning 03 Project Schedule Planning 08 Communication Planning 04 Resource Planning 09 Risk Management Planning 05 Budget Planning  BASIC PROCESSES OF PROJECT PLANNING HEART OF THE PROJECT LIFE CYCLE Objectives: Establish business requirements Establish cost, schedule, list of deliverables, and delivery dates Establish resources plans Obtain management approval and proceed to the next phase BASIC specifying the in-scope requirements for the project to PROCESSES SCOPE PLANNING facilitate creating the work breakdown structure PREPARATION OF THE WORK spelling out the breakdown of BREAKDOWN the project into tasks and sub- STRUCTURE tasks PROJECT listing the entire schedule of the SCHEDULE activities and detailing their DEVELOPMENT sequence of implementation BASIC indicating who will do what work, at which time, and if any PROCESSES RESOURCE PLANNING special skills are needed to accomplish the project tasks BUDGET specifying the budgeted cost to PLANNING be incurred at the completion of the pro ject PROCUREMENT focusing on vendors outside your PLANNING company and subcontracting BASIC planning for possible risks and considering optional PROCESSES RISK MANAGEMENT contingency plans and mitigation strategies QUALITY assessing quality criteria to be PLANNING used for the project COMMUNICATION designing the communication PLANNING strategy with all project stakeholders  DEFINING SCOPE Plan further and write down all the intermediate and final deliverables that you and your team will produce over the course of the project. Deliverables include everything that you and your team produce for the proj ect are the output of each dev e lopme nt phas e , described in a quantifi abl e way.  PROJECT REQUIREMENTS Defined in the scope plan, describe what a project is supposed to accomplish and how the project is supposed to be created and implemented. SIX BASIC CATEGORIES TECHNICAL FUNCTIONAL NON-FUNCTIONAL REQUIREMENTS REQUIREMENTS REQUIREMENTS They specify how t he describe t he specify criteria t hat system needs to be characterist ics of t he can be used to judge designed and final del iverable in t he final product or implemented to provide ord inar y non-technical ser vice t hat your required funct ional ity and language. project del ivers. ful fil l required operat ional characterist ics.  PROJECT REQUIREMENTS SIX BASIC CATEGORIES USER R E G U L AT O R Y BUSINESSS REQUIREMENTS REQUIREMENTS REQUIREMENTS describe what t he users can be inter nal or are t he needs of t he need to do wit h t he exter nal and are usual ly sponsoring non-negot iable. They are system or product. organizat ion, always t he restrict ions, l icenses, Focus is on t he user from a management and laws appl icable to a experience wit h t he perspect ive. product or business t hat system under al l are imposed by t he scenarios. gover nment.  WORK BREAKDOWN STRUCTURE defines the scope of the project and breaks the work down into PURPOSE components that can be scheduled, estimated, and easily monitored and controlled. Allow easier management of each component Allow accurate estimation of time, cost, and resource requirements Lorem Allow ipsum easier dolor sitofamet, assignment humanconsectetur resources adipiscing Allow elit. Vestibulum easier assignment at erat nunc. of responsibility for Nulla eget odio pretium, dignissim tellus activities vel, facilisis ipsum.  SCOPE STATEMENT Can be internal or external and are usually non-negotiable. They are the restrictions, licenses, and laws applicable to a product or business that are imposed by the government. Should also include the list of users using the product, as well as the features in the resulting product. PROJECT SCHEDULE PLANNING DEFINING GOALS Is a further breakdown of the work package elements of the WBS. EXTERNAL PREDECESSORS Sometimes your project will depend on things outside the work you’re doing. DISCRETIONARY PREDECESSORS These are usually process- or procedure-driven or best-practice techniques based on past experience. MANDATORY PREDECESSORS Are the kinds that have to exist just because of the nature of the work  PROJECT SCHEDULE PLANNING LEADS AND LAG Lag time is when you purposefully put a delay between the predecessor task and the successor. Lead time when you give a successor task some time to get started before the predecessor finishes. MILESTONE All of the important checkpoints of your project are tracked as milestones. Some of them could be listed in your contract as requirements of successful completion; some could just be significant points in the project that you want to keep track of. CREATING THE GANTT CHART is a type of bar chart, developed by Henry Gantt, that illustrates a project schedule. Gantt charts are easy to read and are commonly used to display schedule activities.  RESOURCE PLANNING These are people, equipment, place, money, or anything else that you need to do all of the activities that you planned for. FIVE TOOLS bringing in experts who have AND EXPERT JUDGMENT done this sort of work before and getting their opinions on what resources are needed. TECHNIQUES consider several different FOR ALTERNATIVE ANALYSIS options for assigning resources. ESTIMATING something that project managers ACTIVITY PUBLISHED ESTIMATING in many industries use to help them figure out how many DATA resources they need. RESOURCES FIVE TOOLS Its features are designed to help PROJECT project managers estimate resource AND MANAGEMENT needs and constraints. SOFTWARE TECHNIQUES It is a process of estimating individual activity resource needs FOR BOTTOM-UP ESTIMATING or costs and then adding these up together to come up with a total estimate. ESTIMATING ACTIVITY RESOURCES  ESTIMATING ACTIVITY DURATIONS You’ll use these five tools and techniques to create the most accurate estimates: 1. Expert Judgment 2. Analogous Estimating 3. Parametric Estimating 4. Three-point Estimating 5. Reserve Analysis  RESOURCE MANAGEMENT AND HR PLANNING RESOURCE LEVELING This is used to examine unbalanced use of resources over time and for resolving over-allocations or conflicts. It aims at smoothing the stock of resources on hand, reducing both excess inventories and shortages.  WORKING WITH INDIVIDUALS EMOTIONAL INTELLIGENCE Self-awareness Self Regulation Emphathy PERSONALITY TYPES Relationship Management Extroversion (E)-Introversion (I) Sensing (S)-Intuition (N) Thinking Lorem ipsum(T)-Feeling (F) dolor sit amet, consectetur adipiscing Judging elit. Vestibulum(P) (J)-Perceiving at erat nunc. Nulla eget odio pretium, dignissim tellus vel, facilisis ipsum.  RESOURCE PLANNING Delegation - Delegating responsibility and work to others is a critical project management skill. Adjusting Leadership Styles - Personality traits reflect an individual’s preferences, not their limitations. Qualitative Assessment of Project Performance - “What is your gut feeling about how the project is going?” and “How do you think our client perceives the project?”  BUDGET PLANNING The process of estimating and allocating financial resources for a project to ensure it is completed on time, within scope, and within the approved budget. Tools and Techniques for Estimating Cost Determination of Resource Cost Rates Vendor Bid Analysis Reserve Analysis Cost of Quality  METHODS OF ESTIMATING COST ANALOGOUS ESTIMATE PARAMETRIC ESTIMATE An estimate that is based on the costs Estimates that uses statistical of similar past projects, adjusted for relationships between historical data differences in size and complexity. and project parameters (e.g., size, location) to calculate costs. Average costs per unit are multiplied by measured parameters to arrive at an estimate.  METHODS OF ESTIMATING COST BOTTOM-UP ESTIMATING ACTIVITY-BASED ESTIMATES The most accurate and time- An activity can have costs from multiple consuming estimating method is to vendors in addition to internal costs for identify the cost of each item in each labour and materials. Detailed estimates activity of the schedule, including from all sources can be reorganized so labour and materials. those costs associated with a particular activity can be grouped by adding the activity code to the detailed estimate  MANAGING CASH FLOW AND RESERVES "Projects seldom go according to plan in every detail. It is necessary for the project manager to be able to identify when costs are varying from the budget and manage those variations." MANAGING CASH FLOW MANAGEMENT RESERVES CONTINGENCY RESERVES Ensuring fun ds are Fun ds available at t he available when needed is manager's d iscret ion to Fun ds al located to cover crucial, balancing t he address significant unplanned but stat ist ical ly financial team's desire to oppor tunit ies or chal lenges pred ictable cost opt imize investments wit h t hat require changes in increases. These are par t t he project manager's project scope. These are of t he total project need for read ily not par t of t he budget budget. accessible cash. basel ine. Earned Value Analysis(EVA) EVA i s a wi dely used method f or compar ing bud ge te d c osts w ith act ual cos t s duri ng t he pr oje ct. It combine s s che dule d ac tiv itie s w ith det ai led cost est i mat es, al l owing f or par tial comple tion of ac tiv itie s. Key component s i nclude: Budget ed Cost of Work S cheduled ( BCWS ) : Detai l ed cost es t i mat es f or each act i vi ty. Budget ed Cost of Work Performed ( BCWP) : Budget ed cost of work s chedul ed t hat has been compl e te d (Ear ne d Val ue - EV). Act ual Cost ( AC) : Sum of t he amount s act ual l y s pe nt on ite ms. act i vi ty. Variance Indexes for Schedule and Cost SPI CPI Schedule Performance Index Cost Performance Index Ratio of earned value to Ratio of earned value to planned value. actual cost. SPI = EV ÷ PV. CPI = EV ÷ AC Schedule variance (SV) and cost variance (CV) indicate whether a project is on schedule and within budget. The schedule performance index (SPI) and cost performance index (CPI) provide a ratio of earned value to planned value and actual cost, respectively. Estimating Cost to Complete: ETC and EAC Estimate to Estimate at Completion Complete (ETC) (EAC) Money needed to Revised estimate of complete the total project cost project. The estimate to complete (ETC) predicts how much money is needed to finish the project. The estimate at completion (EAC) is the revised estimate of the total project cost. These calculations help in forecasting and managing project finances. ESTABLISHING AND MANAGING THE BUDGET TIMELINE Cost aggregation involves subtotaling costs by category or activity. A budget timeline is created to match the schedule of money transfers with the schedule of activity payments, ensuring funds are available when needed without unnecessary delays or interest charges. This process of matching transfers with payments is called reconciliation.  PROCUREMENT MANAGEMENT Responsible for overseeing all the processes involved in acquiring the products, materials, goods and services needed for efficient business operations.  CONTRACT TYPES FIXED-PRICE CONTRACTS COST-REIMBURSABLE CONTR ACTS It is a legal agreement between the The organization agrees to pay the project organization and an entity contractor for the cost of performing the (person or company) to provide goods or service or providing the goods. services to the project at an agreed-on price. Cost-reimbursable contracts are also known as cost-plus contracts.  PROCUREMENT PLAN SELECTING THE CONTRACT APPROACH This involve choosing how to get the goods or services needed for the project. SOLICITING BIDS Solicitation - is the process of requesting a price and supporting information from bidders. The solicitation usually takes the form of either: Request For Quote - For simple needs focused on pricing. Request For Proposal - For more complex requirements focused on meeting the project quality or schedule requirements. QUALIFYING BIDDERS Before allowing any company to bid, the project team checks whether they are capable of delivering what the project needs.  PROCUREMENT PLAN EVALUATING BIDS MANAGING THE CONTRACT Evaluation process depends on whether an RFQ or Once the contract is in place, the project RFP was used. manager actively manages the contractor’s RFQ: Evaluate based on total cost, including performance. delivery and warranties. RFP: Evaluate both administrative and technical aspects. LOGISTICS AWARDING THE CONTRACT Refers to how materials and equipment are transported, stored, and delivered. After identifying the most suitable bidder, the contract is finalized. For complex contracts: detailed discussions are held to align on goals, risks management, and issue resolution. For simple contracts: involve reviewing and signing the agreement  QUALITY PLANNING It focuses on taking all of the information available at the beginning of the project and determining how quality will be measured and how defects will be prevented.  QUALITY PLANNING TECHNIQUES: COST-BENEFIT ANALYSIS BENCHMARKING DESIGN OF EXPERIMENTS It is looking at how much your It means using the results of It is the list of all the kinds of tests quality activities will cost versus quality planning on other you are going to run on your how much you will gain from projects to set goals for your product. doing them. own. COST OF QUALITY CONTROL CHARTS CAUSE-AND-EFFECT DIAGRAMS It refers to what you get when It can be used to define It can help in discovering you add up the cost of all the acceptable limits. problems. prevention and inspection activities you are going to do on your project.  QUALITY ASSURANCE It is the process of making sure that the quality standards, plans, and procedures set for a project are being followed correctly during its execution. QUALITY ASSURANCE PURPOSE: to create confidence that the quality plan and controls are working properly. COMMUNICATION PLANNING  COMMUNICATION PLANNING Communication Planning coordinates ways to deliver information to people who are important in the project. The Communication Plan should have a detailed outline that demonstrates what communicators want to say, who they want to say it to, and when and how they want to say it.  2 TYPES OF COMMUNICATION Synchronous Communication Synchronous communication is Live Meeting communication that occurs Conference call when the exchange of Audio conference information or messages Computer-assisted conference between the sender and the Video conference receiver happens at the same Instant Messaging time. Texting Asynchronous Communication Asynchronous communication Email is any form of communication Fax involving a delay between Mail and Package Delivery when the sender transmits a Project Blog message and the receiver Really Simple Syndication interprets it. COMMUNICATION PLAN TEMPLATE Communication Plan Template 1. Identify your stakeholders (to whom will the information be delivered?). 2. Identify stakeholder expectations (why is this information being delivered?). 3. Identify communication necessary to satisfy stakeholder expectations and keep them informed (what are the necessary information?). 4. Identify time-frame and/or frequency of communication messages (when). 5. Identify how the message will be communicated: the stakeholder’s preferred method (how will the sender transmit the message?). 6. Identify who will communicate each message (who will send the message?). 7. Document items – templates, formats, or documents the project must use for communicating. RISK MANAGEMENT PLANNING  RISK MANAGEMENT PLANNING Risk is any uncertain event or condition that might affect your project. A Risk Management Plan will help you anticipate potential risks, evaluate them, and create strategies to manage them. There are 4 basic ways to handle a risk – Avoid, Mitigate, Transfer, and Accept. Risk Management Process 1. Risk identification - identify as many threats as possible without evaluating them. 2. Risk Evaluation - evaluate each risk based on the probability that a risk event will occur and the potential loss associated with it 3. Risk Mitigation - develop a risk mitigation plan The project team mitigates risks in various ways: Risk Avoidance - by not engaging in the action that gives rise to the risk Risk Sharing - by partnering with others to share responsibility for the risky activities Risk Reduction - by reducing risk likelihood or impact, or both Risk Transfer - by transferring to others more willing to bear the risk  CONTINGENCY PLAN The project team can also develop an alternative method for accomplishing a project goal when a risk event has been identified that may affect the accomplishment of that project goal. This alternative method is called Contingency Plan. A Contingency Plan is a course of action designed to help an organization respond effectively if an identified risk becomes a reality. PROJECT RISK BY PHASES Project Risk by Phases 1. Initiation - risk must be considered and weighed against the potential benefit of the project’s success in order to decide if the project should be chosen 2. Planning Phase - risks are identified with each major group of activities of the project and planned accordingly 3. Implementation Phase - as the project progresses and more information becomes available to the project team, the total risk on the project typically reduces, but there are still instances where new ones emerge. Thus, the risk plan needs to be updated with new information 4. Closeout Phase - agreements for risk sharing and risk transfer need to be concluded and the risk breakdown structure examined to be sure all the risk events have been avoided or mitigated BY GROUP 4 DELA CRUZ, ICEL KATE GAURANA, CHARLOTTE KILAT, MARIA ISABEL KUDDANA, KEZIAH DIVINE MANALO, DANICA GRACE