1. Part II
Project Planning

2. Project Management

3. Project Activity and Risk Planning
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

7. Project Management Process Groups
Knowledge
Areas
Project Management Process Groups
Initiating
Planning
Executing
Monitoring & Controlling
Closing
Integration
Develop Project Charter
Develop Project Management Plan
Direct & Manage Project Execution
Monitor & Control Project Work
Perform Integrated Change Control
Close Project or Phase
Scope
Collect Requirements
Define Scope
Create WBS
Verify Scope
Control Scope
Time
Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations Develop Schedule
Control Schedule
Cost
Estimate Cost
Determine Budget
Control Costs
Quality
Plan Quality
Perform Quality Assurance
Perform Quality Control HR
Develop HR Plan
Acquire Project Team
Develop Project Team
Manage Project Team
Communications
Identify Stakeholders
Plan Communications
Distribute
Information
Manage Stakeholder Expectations
Report Performance
Risk
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Monitor & Control Risks
Procurement
Plan Procurements
Conduct Procurements
Administer Procurements
Close Procurements

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 Inputs Tools & Techniques Outputs
Project Statement of Work
Expert Judgment
Project Charter
Business Case
Contract
Enterprise Environmental Factors
Organizational Process Assets

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

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