PMBOK 7th Edition Planning Performance Domain PDF

2.4 PLA N NING P E RFORMA NCE DO MAI N Planning organizes, elaborates, and coordinates project work throughout the project. PLANNING PERFORMANCE DOMAIN The Planning Performance Effective execution of this performance domain results in the Domain addresses...

2.4 PLA N NING P E RFORMA NCE DO MAI N Planning organizes, elaborates, and coordinates project work throughout the project. PLANNING PERFORMANCE DOMAIN The Planning Performance Effective execution of this performance domain results in the Domain addresses following desired outcomes: activities and functions The project progresses in an organized, coordinated, and associated with the initial, deliberate manner. ongoing, and evolving There is a holistic approach to delivering the project organization and outcomes. coordination necessary Evolving information is elaborated to produce the for delivering project deliverables and outcomes for which the project was deliverables and undertaken. outcomes. Time spent planning is appropriate for the situation. Planning information is sufficient to manage stakeholder expectations. There is a process for the adaptation of plans throughout the project based on emerging and changing needs or conditions. Figure 2-13. Planning Performance Domain Section 2 – Project Performance Domains 51  Estimate. A quantitative assessment of the likely amount or outcome of a variable, such as Accuracy. Within the quality management system, accuracy is an assessment of correctness. Precision. Within the quality management system, precision is an assessment of exactness. Crashing. A method used to shorten the schedule duration for the least incremental cost by adding resources. A schedule compression method in which activities or phases normally done in sequence are performed in parallel for at least a portion of their duration. Budget. The approved estimate for the project or any work breakdown structure (WBS) component or any schedule activity. 2.4.1 P L ANNI NG OVE R VIE W The purpose of planning is to proactively develop an approach to create the project deliverables. The project deliverables drive the outcomes the project was undertaken to achieve. High-level planning may begin prior to project authorization. The project team progressively elaborates initial project documents, such as a vision statement, project charter, business case, 52 PMBOK ® Guide  It is becoming more common for initial planning to consider social and environmental impacts take the form of a product life cycle assessment which evaluates the potential environmental impacts of a product, process, or system. The product life cycle assessment informs the design of products and processes. It considers the impacts of materials and processes with regards to sustainability, toxicity, and the environment. The amount of time spent planning, both up front and throughout the project, should be appropriate manner but not more detailed than necessary. Project teams use planning artifacts to decisions, take action, and maintain alignment between the project and stakeholders. 2.4.2 P L ANNI NG VAR I ABLE S Because each project is unique, the amount, timing, and frequency of planning varies. Variables ▶ Development approach. when planning is conducted. Examples include: ▹ of the planning is performed up front. The initial plans are progressively elaborated with more detail throughout the project, but there is little change to the original scope. ▹ An approach with high-level planning up front, followed by a design phase where prototyping is used. After the project team and stakeholders agree to the design, the project team completes more detailed planning. ▹ Adaptive approaches where the project team conducts iterations. Some planning occurs up front to establish release plans and further planning occurs at the beginning of each iteration. Section 2 – Project Performance Domains 53  ▶ Project deliverables. materials purchasing, logistics, and delivery. Product development or high-technology projects may use continuous and adaptive planning to allow for evolution and changes based on stakeholder feedback and technological advances. ▶ Organizational requirements. Organizational governance, policies, procedures, processes, ▶ Market conditions. Product development projects can take place in a highly competitive environment. In these situations, project teams can undertake a minimum amount of up-front planning as the emphasis is on speed to market. The cost of delay that extensive planning entails exceeds the risk of potential rework. ▶ Legal or regulatory restrictions. planning documents before granting an authorization to proceed or to secure approval to release the project deliverable into the market. 2.4.2.1 Delivery Planning begins with understanding the business case, stakeholder requirements, and the project and product scope. Product scope is the features and functions that characterize a product, service, or result. Project scope is the work performed to deliver a product, service, or result with the Predictive planning approaches start with the high-level project deliverables up front and breakdown structure (WBS) to decompose the scope into lower levels of detail. Projects that use iterative or incremental approaches can have high-level themes or epics that are decomposed into features, which are then further decomposed into user stories and taken place. Project teams plan routine work based on the concept of last responsible moment. This approach defers a decision to allow the project team to consider multiple options until the cost of for work that may change or may not be needed. 54 PMBOK ® Guide 2.4.2.2 Estimating resources. Estimates are a quantitative assessment of the likely amount or outcome of a variable, based on current information and circumstances. The project’s phase in the life cycle impacts four aspects associated with estimating: ▶ Range. Estimates tend to have a broad range at the start of the project when there is not much information about the project and product scope, stakeholders, requirements, risks, a project opportunity. Projects that are well along in their life cycle may have an estimating ▶ Accuracy. Accuracy refers to the correctness of an estimate. Accuracy is linked to range in that the lower the accuracy, the larger the potential range of values. An estimate at the start of the project will have less accuracy than one that is developed halfway through the project. ▶ Precision. degree of exactness associated with the estimate. For example, an estimate of 2 days is more precise than “sometime this week.” The precision of estimates should be compatible with the desired accuracy. ▶ Section 2 – Project Performance Domains 55  75% 50% Range 25% 0% -25% Time Figure 2-14. Estimate Range Decreases over Time 6 7 8 9 10 6 7 8 9 10 10 9 8 7 6 10 9 8 7 6 Figure 2-15. Low Accuracy, High Precision 56 PMBOK ® Guide  ▶ Deterministic and probabilistic estimating. Deterministic estimates, also known as Probabilistic estimates include a range of estimates along with the associated probabilities within the range. They can be developed manually by (a) developing a weighted average based on multiple likely outcomes, or (b) running a simulation to develop a probability analysis of a particular outcome, usually in terms of cost or schedule. A probabilistic estimate derived from a computer simulation has three associated factors: 1. 2. 3. A probability distribution describing the dispersion of the data within and around the given range. Together these three items form a complete metric describing a probabilistic estimate. ▶ Absolute and relative estimating. productivity per workday. estimates. Relative estimates only have meaning within a given context. Section 2 – Project Performance Domains 57  One form of relative estimating is planning poker. In planning poker, the project team performing is estimated using the amount of estimated work compared to points assigned to previous work. ▶ Flow-based estimating. Flow-based estimates are developed by determining the cycle time and throughput. Cycle time is the total elapsed time it takes one unit to get through a process. Throughput is the number of items that can complete a process in a given amount ▶ Adjusting estimates for uncertainty. be adjusted, or contingency time or funds may be added, based on the outcomes of a simulation conducted to establish the range of uncertainty for these parameters. 2.4.2.3 Schedules A schedule is a model for executing the project’s activities, including durations, dependencies, and other planning information. Schedule planning can use predictive or adaptive approaches. Predictive approaches follow a stepwise process as follows: ▶ Step 1. ▶ Step 2. Sequence related activities. ▶ Step 3. the activities. ▶ Step 4. Allocate people and resources to the activities based on availability. ▶ Step 5. Adjust the sequence, estimates, and resources until an agreed-upon schedule is achieved. 58 PMBOK ® Guide  If the schedule model does not meet the initial desired end date, schedule compression methods are applied. Crashing is a schedule compression method that seeks to shorten the duration for the least incremental cost. Crashing can include adding people to activities, working overtime, or paying to expedite deliveries. Fast tracking is a schedule compression method in which activities or tasks that are normally done in sequence are performed in parallel, at least for a portion of their duration. Fast tracking often entails applying leads and lags along a network path. A lead is where the work of a successor A lag is a delay of a successor activity. An example of using a lag would be changing the type of relationship between activities, and then applying a lag. For example, rather than waiting for an the start of one activity and the start of another activity (a start-to-start relationship). Section 2 – Project Performance Domains 59  My Project 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Activity 1 Activity 2 FS –1 Activity 3 Activity 4 Activity 5 Activity 6 Activity 7 FF+1 Activity 8 End When compressing the schedule, it is important to determine the nature of the dependencies The four types of dependencies are: ▶ Mandatory dependency. A relationship that is contractually required or inherent in the ▶ Discretionary dependency. A relationship that is based on best practices or project ▶ External dependency. A relationship between project activities and non-project activities. ▶ Internal dependency. A relationship between one or more project activities. This type 60 PMBOK ® Guide  Adaptive schedule planning uses incremental planning. One such scheduling approach is indicates the basic features and functionality to be included in each release. Within each release, may include features, risk reduction, experimentation, or other ways of delivering or protecting value. The planning for the work in future releases is kept at a high level so the project team does not engage in planning that could change based on feedback from earlier releases. Product vision drives product roadmap Release 1 Release 2 Release 3 Product roadmap drives release plans Release Plan Release plan establishes Iteration 0 Iteration 1 Iteration 2 Iteration 3 Iteration n the iterations Iteration Plan Iteration plans schedule feature development Feature A Feature A Feature B Feature C Feature D (User Story 1) (User Story 2) (User Story 3) (User Story 4) (User Story 5) Prioritized features delivered by user stories (estimated Task A 5 Hours in story points) Task B 8 Hours Tasks (estimated in hours) created to Task C 4 Hours deliver user stories Task D 12 Hours Figure 2-17. Release and Iteration Plan Section 2 – Project Performance Domains 61  Adaptive approaches often use timeboxes. The work in each timebox is based on a prioritized backlog. The project team determines the amount of work they can do in each timebox, estimates the work, and self-manages to accomplish the work. At the end of the timebox, the project team demonstrates the work completed. At that point, the backlog and estimates of work available to be done may be updated or reprioritized for the next timebox. Determining the schedule involves using the information in the estimating section to determine that the duration can be reduced by adding people. This approach can work up to a point, after a test or conducting employee training. The nature of the work determines if and how much the duration can be reduced by adding 2.4.2.4 Budget The project budget evolves from the agreed estimates for the project. The information in are then aggregated to develop the cost baseline. The cost baseline is often allocated across the limitations for a budget period, the work may need to be rescheduled to meet those limitations. The project budget should include contingency reserve funds to allow for uncertainty. Contingency reserves are set aside to implement a risk response or to respond to risk events should they occur. Management reserves are set aside for unexpected activities related to in-scope work. Depending on the organization’s policies and organizational structure, management reserves may be managed shows the budget build up. 62 PMBOK ® Guide  Management Reserve Contingency Reserve Project Budget Work Cost Cost Estimates Baseline Total Amount Project Budget Component Figure 2-18. Budget Build Up 2.4.3 P RO J E CT TE AM COM POS I T I O N A N D S T RU C T U RE Planning for project team2 composition begins with identifying the skill sets required to accomplish of experience in similar projects. weighed against the costs that will be incurred. This topic is about planning for the project team. Topics associated with project team leadership are addressed in the Team Performance Domain. Section 2 – Project Performance Domains 63  When planning for the project team, the project manager considers the ability and necessity for the project team to work in the same location. Small project teams that can work in the same room are able to take advantage of osmotic communication and can solve problems as they arise. Some or countries. On projects where project team members work virtually, more time is spent connecting people through technology. 2.4.4 C OMM UNI CATI ON engagement as described in the Stakeholder Performance Domain (Section 2.1). Communication is project entails considering the following: ▶ Who needs information? ▶ What information does each stakeholder need? ▶ Why should information be shared with stakeholders? ▶ What is the best way to provide information? ▶ When and how often is information needed? ▶ Who has the information needed? and public, or general and detailed. Analyzing the stakeholders, information needs, and categories of information provides the foundation for establishing the communications processes and plans for the project. 64 PMBOK ® Guide 2.4.5 P H Y SIC AL R E SO UR CE S Physical resources apply to any resource that is not a person. It can include materials, equipment, software, testing environments, licenses, and so forth. Planning for physical resources to plan for procurement activities to acquire the resources. This may be as simple as utilizing a basic ordering agreement or as complicated as managing, coordinating, and integrating several large procurement activities. Planning for physical resources includes taking into account lead time for delivery, movement, storage, and disposition of materials, as well as a means to track material inventory from arrival on materials think and plan strategically about the timing from order, to delivery, to usage. This can include evaluation of bulk ordering versus cost of storage, global logistics, sustainability, and integrating management of physical assets with the rest of the project. 2.4.6 P RO CUR E M E NT Procurements can happen at any time during a project. However, up-front planning helps to set expectations that ensure the procurement process is performed smoothly. Once the high- level scope is known, project teams conduct a make-or-buy analysis. This includes identifying those deliverables and services that will be developed in-house, and those that will be purchased from external sources. This information impacts the project team and the schedule. Contracting professionals need advance information on the type of goods needed, when they will be needed, Section 2 – Project Performance Domains 65  2.4.7 C HAN GE S There will be changes throughout the project. Some changes are a result of a risk event occurring or a project environment change, some are based on developing a deeper understanding of requirements, and others are due to customer requests or other reasons. Therefore, project teams should prepare a process for adapting plans throughout the project. This may take the form of a change control process, reprioritizing the backlog, or rebaselining the project. Projects that have a 2.4.8 M ETR IC S There is a natural linkage between planning, delivering, and measuring work. That linkage is metrics. Establishing metrics includes setting the thresholds that indicate whether work performance is as expected, trending positively or negatively away from expected performance, or unacceptable. Deciding what to measure and how often is best informed by the phrase “only measure what matters.” associated with schedule and budget performance are often driven by organizational standards and are related to a baseline or an approved version of the schedule or budget against which actual results are compared. As part of planning, the metrics, baselines, and thresholds for performance are established, as well as any test and evaluation processes and procedures that will be used to measure performance to evaluate variance of actual performance as part of the Measurement Performance Domain. 66 PMBOK ® Guide 2.4.9 A LI G NME N T Planning activities and artifacts need to remain integrated throughout the project. This means that planning for the performance in terms of scope and quality requirements aligns with delivery commitments, allocated funds, type and availability of resources, the uncertainty inherent in the project, and stakeholder needs. Project teams can require additional planning artifacts depending on the type of project. For example, logistics plans will need to integrate with material and delivery needs, testing plans will need to align with quality and delivery needs, and so forth. Work on one project often occurs in parallel with other projects in a program or a release. The timing of the work of a single project should align with the needs of the work on related projects and the operations work of the organization. Large projects may combine the planning artifacts into an integrated project management timing, frequency, and degree of planning, the various aspects of the project need to remain aligned and integrated. 2.4.10 I N TE R A CTIO NS W I TH O T H ER PE RF O R M A N C E DO M A I N S Planning occurs throughout the project and integrates with each performance domain. At the developed. Depending on the selected development approach and life cycle, intensive planning may cycles encourage just enough planning at various points throughout the project with the expectation that plans will evolve. Throughout the project, planning guides the project work, delivery of outcomes, and business value. Project teams and stakeholders establish measures of progress and success, and performance uncertainty and risks. Plans may need to be revised or new plans developed to account for events or Section 2 – Project Performance Domains 67  2.4.11 C HECKI NG R E S ULTS Outcome Check The project progresses in an A performance review of project results against the project baselines and organized, coordinated, and other measurement metrics demonstrates that the project is progressing as deliberate manner. planned. Performance variances are within thresholds. There is a holistic approach to The delivery schedule, funding, resource availability, procurements, etc., delivering the project outcomes. demonstrate that the project is planned in a holistic manner with no gaps or areas of misalignment. Evolving information is elaborated Initial information about deliverables and requirements compared to current to produce the deliverables and information demonstrates appropriate elaboration. Current information outcomes for which the project was compared to the business case indicates the project will produce the undertaken. deliverables and outcomes it was undertaken to deliver. Time spent planning is appropriate Project plans and documents demonstrate that the level of planning is for the situation. appropriate for the project. Planning information is sufficient to The communications management plan and stakeholder information indicate manage stakeholder expectations. that the communications are sufficient to manage stakeholder expectations. There is a process for the Projects using a backlog show the adaptation of plans throughout the project. adaptation of plans throughout the Projects using a change control process have change logs and documentation project, based on emerging and from change control board meetings that demonstrate the change control changing needs or conditions. process is being applied. 68 PMBOK ® Guide