1. Chapter 3 Project Activity and Risk Planning

2. Two Extremes Approaches to Planning
“Ready, fire, aim”
Tom Peters
“Paralysis by analysis”
There is a happy medium that everyone would like to strike

3. The Basis of a Project Plan-the “Project Charter”
Primary function of a project plan is to serve as a roadmap
Should include the business case and strategic reasons for the project
Should contain sufficient information to know the status of the project at any time
Also needs the project’s history to date

4. Categories of Elements Required in the Project Charter
Purpose
Objectives
Overview
Schedules
Resource requirements
Personnel and stakeholders
Risk management
Evaluation methods
Slide on each

5. Purpose Business case for the project
Strategic reasons for the project
Expected profitability
Competitive effects
Desired scope
Any other technical results
Intent is to communicate to stakeholders the reasons for the project

6. Objectives Another name is project mission statement
More detailed description of the…
Scope
Deliverables
Outcomes
Communicate to project team members what will be done to achieve the overall project objectives

7. Overview Intended for senior management Brief description of project
Deliverables
Milestones
Expected profitability and competitive effects
Technological and managerial approaches
Agreements with the client or any third party

8. Schedule Summary of schedules and milestones
Work breakdown structure (WBS)
Time to complete each task

9. Resource Requirements
Estimates of project expenses
Capital and operating
Costs associated with each task
Overhead and fixed charges
Appropriate account numbers
Project budget

10. Personnel and Stakeholders
Stakeholders, sponsor, project manager, and some team members
Special skill requirements
Necessary training
Special legal arrangements
Such as non-disclosure agreements

11. Risk Management Listing of potential disasters
Major and minor
Late subcontractor deliveries, bad weather, unreasonable deadlines, equipment failure, changes in project scope
Contingency plans are described
Does not stop disasters
Softens the impact

12. Evaluation Methods Evaluation procedures and quality standards
Procedures for monitoring, collecting, and storing data on project performance

13. The Planning Process-Overview
Develop and evaluate the concept of the project
Carefully identify what project deliverables must have to be successful
Create a system
Test the prototype
Integrate the deliverable into target system
Validate the deliverable
Let client test it
Make sure client understands operating and maintenance requirements

14. The Planning Process-Nuts and Bolts
Once approved, project should have a launch meeting
New project manager should review project objectives
Make sure they understand
Identify important senior managers
Determine if anything is atypical
Senior manager introduces project to group
Project manager chairs launch meeting

15. Results of the Launch Meeting
The project’s scope is understood
Various functional managers understand their responsibilities and have committed to develop an initial task and resource plan
Any potential benefits to the organization outside the scope are noted

16. Sorting Out the Project-The Work Breakdown Structure (WBS)
Inadequate up-front planning is a primary contributor to the failure of a project
A primary purpose of the WBS is to ensure that no task is overlooked
Every task, no matter how small, should be listed
Along with material and human resources
This is a non-trivial task

17. A Sample (Partial) WBS
Figure 3-1

18. Notes on WBS
Microsoft Project (MSP) will make a WBS list at the touch of a key
But not a tree-chart
At any given level, the “generality” or “degree of detail” of the tasks should be roughly at the same level
The breakdown of level 1 tasks should be delegated to someone who will carry out the level 2 tasks
The job of planning should be delegated to the lowest competent level

19. Extensions of the Everyday WBS
WBS generally oriented towards deliverables
Can be reshaped with some additional data often not included in the WBS
Estimates of resources for each task
Estimates of the time for each task
Who has responsibility for each task
Sequence information for each task
Increases it orientation toward planning and administration

20. A Modified WBS for Improving Staff Orientation
Table 3-2 (Partial)

21. More on the Work Breakdown Structure and Other Aids
RACI Matrix is a table
Project tasks derived from the WBS listed in rows and departments and individuals in the columns
Helps organize the project team

22. The RACI Matrix
Figure 3-5

23. A Whole-Brain Approach to Project Planning
Mind mapping is a visual approach that closely mirrors the way the human brain records and stores information
In addition to its visual nature, this methodology has the advantage of tapping in to the creative potential of multiple team members
Mind mapping is an entertaining approach that helps generate enthusiasm and involvement

24. Sample Mind Map
Figure 3-9

25. Risk Management
Risk identification
Risk analysis
Response to risk

26. Breakdown into Sub-processes
Risk management planning
Risk identification
Qualitative risk analysis
Quantitative risk analysis
Risk response planning
Risk monitoring and control
Slide on each

27. Risk Management Planning
Like any other planning process
Must ensure that the necessary resources can be applied in a timely manner
It is a continuous process
The factors that cause uncertainty change over time

28. Risk Identification and Qualitative Risk Analysis
Steps 2-3 often carried out together
Scenario analysis
Well-known method for identifying risk
Involves envisioning likely scenarios and resulting outcomes
Failure mode and effect analysis (FMEA)
List ways project might fail
List consequences and evaluate its severity
List cause and likelihood
Estimate the ability to detect each failure
Calculate the risk priority number
Sort the potential failures by their risk priority number

29. Quantitative Risk Analysis
State outcomes as probability distribution and use distributions to evaluate the desirability of certain decisions
Objective is to illustrate the risk profile of the outcomes
Risk profiles are one factor to consider in making the decision
Techniques for analysis include:
Expected value
Simulation

30. Risk Response Planning
Deciding on which risks to prepare for and which to ignore
Main preparation is a risk response plan
Risk response plan includes contingency plans and logic charts detailing what to do
Contingency plan is a backup for some emergency or unplanned event (“plan B”)
Logic chart shows the flow of activities once a backup plan is initiated

31. Risk Monitoring and Control
Monitoring and control are tasks for the parent organization
As well as the project
Must keep records for future projects
Also must continue to search for new risks

32. Copyright
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