MGT 461 Lecture 22 Project Planning Ghazala Amin

MGT 461 Lecture # 22 Project Planning Ghazala Amin

Project Management Processes » PM processes are divided into five phases or process groups Initiating Processes Planning Processes Controlling Processes Professional Responsibility Executing Processes Closing Processes

PM Framework and Integration Project Life Cycle Team Development Managing Project Human Resources Activities Process Groups Project Initiation Project Organizing Planning WBS Project Scheduling Executing/Control Project Monitoring Control Meetings Change and Risk Management Contract and Customer Relationship Management 3 Closeout Project Closeout

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Project Planning • The purpose of Project Planning is to; • establish and • maintain • plans that define project activities. Majority of Project Manager’s time is spent to effectively plan the project activities. 5

When Project Planning is not done well…. • Poor estimates lead to cost and schedule over runs. • Inability to discover deviations from undocumented plans • Resources are not available or applied when needed. • Inability to meet commitments • PROJECTS FAIL 2004 -2005 by Carnegie Mellon University Introduction to CMMI V 1. 1 6

When Project Planning is not done well…. • Why Should we care? Because • Customers don’t trust suppliers who waste their resources (i. e. loss of future business) • No lessons learned for future projects means making the same mistakes on multiple projects. • Unhappy customers, employees, stockholders (short life for the business) “IF YOU FAIL TO PLAN, THEN YOU PLAN TO FAIL” 2004 -2005 by Carnegie Mellon University Introduction to CMMI V 1. 1 7

Project Planning Goals • Establish Estimates • Estimates of project planning parameters are established and maintained. • Develop a Project Plan • A project plan is established and maintained as basis for managing the project. • Obtain Commitment to the Plan • Commitments from relevant stakeholders are established and maintained. 2004 -2005 by Carnegie Mellon University Introduction to CMMI V 1. 1 8

Project Planning Context Establish Estimates Planning Data Develop a Project Plan Obtain Commitment to the plan Project Plan Relevant Stakeholders 2004 -2005 by Carnegie Mellon University Introduction to CMMI V 1. 1 PM&C 9

Project Planning – Establishing Estimates Estimate the Project Scope Establish Estimates of the Work products and Tasks Planning Data Define Project Life Cycle Determine Estimate Of Effort and Cost 2004 -2005 by Carnegie Mellon University Introduction to CMMI V 1. 1 10

Project Planning Context Establish Estimates Planning Data Develop a Project Plan Obtain Commitment to the plan Project Plan Relevant Stakeholders 2004 -2005 by Carnegie Mellon University Introduction to CMMI V 1. 1 PM&C 11

Planning Data Project Planning – Develop Project Plan Establish the Budget and Schedule Plan Stakeholder Involvement Identify Project Risks Plan for Project Resources Establish the Project Plan for Data Management Plan for Needed knowledge And skills Project Plan 2004 -2005 by Carnegie Mellon University Introduction to CMMI V 1. 1 12

Project Plan » Formal, approved document used to manage and control project execution. Includes…. � Project Charter � WBS - Task and resource assignment � Major milestones and baseline target delivery dates � Project Communication Plan � Responsibility Assignment Matrix � Risk Management document � Issues Management Document � Change Management Document � Milestone Chart � Project Status Plan template � Quality Assurance Document � Lessons Learned …. . The above documents need to be in place to be ready to execute, manage and track project performance 13

Project Planning Context Establish Estimates Planning Data Develop a Project Plan Obtain Commitment to the plan Project Plan Relevant Stakeholders 2004 -2005 by Carnegie Mellon University Introduction to CMMI V 1. 1 PM&C 14

Project Planning – Obtaining Plan Commitment Review Plans Affecting the Project Reconcile Work and Resource Level Project Plan Obtain Plan Commitment Relevant Stakeholders 2004 -2005 by Carnegie Mellon University Introduction to CMMI V 1. 1 15

Relevant Stakeholder-Sponsor • Sponsor – An individual or an organization who has the authority to perform, delegate, or ensure completion of the following project commitments: • Formalization of an agreement with the project delivery organization. • Approval to proceed with the start of the project or of a project phase. • Spending for the cost/price of the project as specified in the agreement. • The sponsor may be internal or external to the project delivery team’s organization. 16

Relevant Stakeholder-Sponsor • Sponsor Agreement Management – The processes necessary to build the agreement; – Present it to the sponsor – Negotiate the changes – And at the end of the project or phase, close out the agreement. Phase end reviews should be used to help the sponsor determine if the project should continue to next phase 17

Project Planning • The purpose of good Project Planning is to ensure; • All detailed plans for managing the project are defined • Formal commitments are established • Team is ready to execute !!! Effective project planning = readiness for performance. 18

Project Planning Checkpoint • As a project manager you must; • Validate financial commitment to the business • Set expectation with client and project sponsor • Recognize that this is hard go/no go decision • Have your project team committed to the plan • Be ready to be accountable for the project execution Project Planning is crucial point in the project life cycle when you decide if the project is ready to commit to future execution tasks 19

How does an estimate become a budget • Validate estimate with the project team • Review assumptions, hours, risks etc. • Validate estimate with the sponsors, financial executive, quality assurance team. . • Business rationale, timings and cost estimates, any cost buffers or contingency reserves, profit contribution… • Baseline the budget • Report monthly status. • Plan what the senior management would like to see 20

Remember !! • Project Managers are responsible for; • • • Cost Project Profit Project team efficiency Project expenses Quality control ……………. At the end of the project planning process, your business executives decide if your project can/should target meeting specific business objectives. 21

Few Causes of troubled projects (Planning Phase) • • • Failure to set and manage customer expectations Customer unprepared to take on project responsibilities Lack of common understanding of requirements Poor quality proposals Lack of information in charter Unclear organization roles and responsibilities Failure to plan and manage project risks Lack of defined quality control mechanisms Inaccurate and uncommitted project estimates …. . 22