Part II

1. Part II Project Planning

2. Project Management

3. Chapter 6 Project Activity and Risk Planning

4. Initial Project Coordination and the Project Charter • Early meetings are used to decide on participating in the project • Used to “flesh out” the nature of the project • Outcomes include: • Technical scope • Areas of responsibility • Delivery dates or budgets • Risk management group

5. Outside Clients • When it is for outside clients, specifications cannot be changed without the client’s permission • Client may place budget constraints on the project • May be competing against other firms

6. Project Charter Elements • Purpose • Objectives • Overview • Schedules • Resources • Personnel • Risk management plans • Evaluation methods

8. Integration Processes • Develop Project Charter • Develop Project Management Plan • Direct & Manage Project Execution • Monitor & Control Project Work • Perform Integrated Change Control • Close Project or Phase

9. Project Charter • What goes into your Project Charter?

10. Project Charter • What goes into your Project Charter? • Title • Description • Who is the Project Manager? What is their authority? • What is the business need? • What is the justification? • What are the assigned resources? • Who are the stakeholders? • What are the known stakeholder requirements? • What are the deliverables? • What are the constraints? • What are the assumptions?

11. Project Charter • Where does all this information come from? • Primarily, the sponsor. • Who is the sponsor? What is their role?

12. Project Charter

13. Project Charter • Project Statement of Work • Created by the customer or sponsor • Gives the description of the project scope • Links the project to the strategic plan • Think of it as a high level “contract” between the sponsor and the Project Manager

14. Project Charter • Business Case • What are some examples of a business case?

15. Project Charter • Business Case • Market demand • Organizational need • Customer request • Technological advance • Legal requirement • Ecological impact • Social need

16. Project Charter • Contract • Many projects begin because a contract has been signed • The contract will give us many details of what we need to know • If this is the case, then include a copy of the contract with the Project Charter

17. Project Charter • Enterprise Environmental Factors • “Company culture and existing systems that the project will have to deal with or can make use of.” • Could be positive or negative • Company organization • Stakeholder tolerances • Relevant standards • Think of as “the baggage”

18. Project Charter • Enterprise Environmental Factors • Examples: • Company culture • Government or industry standards • Regulations, quality standards, etc • Existing HR skills • Personnel administration • Hiring & firing guidelines • Past performance reviews of employees • Union contacts • PM Info Systems • Company ordering and scheduling tools, etc

19. Project Charter • Organizational Process Assets • Processes, procedures, policies, corporate knowledge bases and historical information • Lessons learned • Historical records • Templates • Learning the organization has done in the past to help the projects of today • Best practices

20. Starting the Project Plan: The WBS • What is to be done • When it is to be started and finished • Who is going to do it

21. Starting the Project Plan: The WBS Continued • Some activities must be done sequentially • Some activities may be done simultaneously • Many things must happen when and how they are supposed to happen • Each detail is uncertain and subjected to risk

22. Hierarchical Planning • Major tasks are listed • Each major task is broken down into detail • This continues until all the activities to be completed are listed • Need to know which activities “depend on” other activities

23. A Form to Assist Hierarchical Planning Figure 6-2

24. Career Day Figure 6-4

25. The Work Breakdown Structure (WBS) • A hierarchical planning process • Breaks tasks down into successively finer levels of detail • Continues until all meaningful tasks or work packages have been identified • These make tracking the work easier • Need separate budget/schedule for each task or work package

26. A Visual WBS Figure 6-3

27. Steps to Create a WBS • List the task breakdown in successive levels • Identify data for each work package • Review work package information • Cost the work packages • Schedule the work packages • Continually examine actual resource use • Continually examine schedule

28. Human Resources • Useful to create a table that shows staff needed to execute WBS tasks • One approach is an organizational breakdown structure • Organizational units responsible for each WBS element • Who must approve changes of scope • Who must be notified of progress • WBS and OBS may not be identical

29. The Responsibility (RACI) Matrix • Another approach is the Responsible, Accountable, Consult, Inform (RACI) matrix • Also known as a responsibility matrix, a linear responsibility chart, an assignment matrix, a responsibility assignment matrix • Shows critical interfaces • Keeps track of who must approve what and who must be notified

30. Sample RACI Matrix Figure 6-7

31. Agile Project Planning and Management • When scope cannot be determined in advance, traditional planning does not work • Agile project management was developed to deal with this problem in IT • Small teams are located at a single site • Entire team collaborates • Team deals with one requirement at-a-time with the scope frozen

32. Interface Coordination Through Integration Management • Managing a project requires a great deal of coordination • Projects typically draw from many parts of the organization as well as outsiders • All of these must be coordinated • The RACI matrix helps the project manager accomplish this

33. Managing Projects by Phases and Phase-Gates • Break objectives into shorter term sub-objectives • Project life cycle is used for breaking a project up into component phases • Focus on specific, short-term output • Lots of feedback between disciplines

34. Risk Management • Projects are risky, uncertainty is high • Project manager must manage this risk • This is called “risk management” • Risk varies widely between projects • Risk also varies widely between organizations • Risk management should be built on the results of prior projects

35. Parts to Risk Management • Risk management planning • Risk identification • Qualitative risk analysis • Quantitative risk analysis • Risk response planning • Risk monitoring and control • The risk management register

36. Risk Management Planning • Need to know the risk involved before selecting a project • Risk management plan must be carried out before the project can be formally selected • At first, focus is on externalities • Track and estimate project survival • Project risks take shape during planning • Often handled by project office

37. Risk Identification • Risk is dependent on technology and environmental factors • Delphi method is useful for identifying project risks • Other methods include brainstorming, nominal group techniques, checklists, and attribute listing • May also use cause-effect diagrams, flow charts, influence charts, SWOT analysis

38. Qualitative Risk Analysis • Purpose is to prioritize risks • A sense of the impact is also needed • Each objective should be scaled and weighted • Construct a risk matrix • Same approach can be used for opportunities

39. Risk Matrix Figure 6-12

40. Quantitative Risk Analysis • List ways a project can fail • Evaluate severity • Estimate likelihood • Estimate the inability to detect • Find the risk priority number (RPN) (RPN = S  L  D) • Consider ways to reduce the S, L, and D for each cause of failure

41. A FMEA Example Table 6-1

42. Decision Tree Analysis Figure 6-13

43. Threats Avoid Transfer Mitigate Accept Opportunities Exploit Share Enhance Accept Risk Response Planning

44. Risk Monitoring and Control • Monitoring covered in detail in Chapter 10 • Control covered in Chapter 11

45. The Risk Management Register • Environments that may impact projects • Assumptions made • Risks identified • List of categories and key words • Estimates on risk, states of project’s environment, or on project assumptions • Minutes • Actual outcomes