1. Principles of Project Management Module 3 Project Planning

2. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Project Planning Planning is a pre-emptive [vorweggenommene] consideration of future activities Based on the “five friends, who taught me all I know” [W-Fragen] Allows consideration of alternatives Mistakes are inexpensive

3. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Questions, PjMt Tasks & Deliverables I What needs to be done? structure project Work Breakdown Structure [Projektstrukturplan] Work Packages [Arbeitspakete] Who does it? determine resources refined Work Packages What are the most important events? define milestones Milestone Plan [Meilensteinplan]

4. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Questions, PjMt Tasks & Deliverables II When must the work be done? determine sequences determine interdependencies Time Line (aka Project Plan) [Terminplan] Gantt Chart [Balkanplan] PERT Diagram [Netzplan] What effort and costs are involved? determine effort and costs Resource Plan [Ressourcenplan] Cost Plan [Kostenplan] - against Budget

5. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Questions, PjMt Tasks & Deliverables III How can the project goals be met? refine plan balance time, resources and costs optimised plan [Planoptimierung] Where are the risks? analyse risks Risk Analysis [Risikoanalyse] including mitigation strategy

6. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Summary - PjMt Tasks

7. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005

8. 123456789101112131415161718Week GANTT Chart Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 MaryTim Mary Tim John Tim Charlie Demo CeBIT Tim John

9. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 PERT Diagram BC H A E F D G Task E Res: 1Dur: 8 Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3

10. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005

11. Work Breakdown Structure Important management and analysis tool Breaks project into manageable chunks sub-projects tasks, task groups Reduces complexity, eases planning Facilitates completeness checks Basis for (later) optimisation Concerned only with subject matter

12. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Example: WBS Project Supporting WPs Sub-Project B Sub-Project C Sub-Project A WP A1 WP A2 WP A3 WP A4 WP B1 WP B2 WP B3 WP C1 WP C2 WP C2.1 WP C2.2 Quality Assurance Change Management Project Management Direct WPs

13. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 WBS Methods Top-Down from overview (Project Goal) to detail (WP) commonest method detail enhanced in the process Bottom-Up from detail (WP) to overview (Project Goal) useful when details known, pre-determined cross-check - replacing existing systems Brain-Storming, Mind-Mapping etc

14. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Have you read …? Business Mind Mapping (German) Tony Buzan, Vanda North; ISBN 3-7064-0577-6 MindManager Student Edition (Software) Creative Thinking and Brainstorming J Geoffery Rawlinson; ISBN 0-7045-0543-6 Rapid Problem Solving with Post-It ® Notes David Straker; ISBN 1-55561-142-7 The Thinker’s Toolkit Morgan D Jones; ISBN 0-8129-2808-3

15. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 House ImplementationAcceptancePlanning House Ground Floor RoofCeller House ImplementationPlanning DesignStructureCellerRoof House MasonryCarpentryEarthworks WBS Principles Object / Artefact based Activity based Phase based Mixed Forms

16. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Work Packages (WP) Tasks, events, activities Basis for all (project) planning Lowest level of WBS Someone is responsible for each WP - ensures that the agreed deliverables are produced within the agreed cost and time constraints

17. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 WP Definition Project name and number Project Manager’s name Work Package number (hierarchical) Work Package name Person responsible for WP Cost centre WP goal(s) and deliverables Pre-requisites (preceding WPs) Space for signatures (WP ~ contract) Particularly important for matrix management - shared responsibility between PjM and Line Management

18. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 WP - Sample Definition

19. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005

20. Milestone Plan Provides quick and quality overview of project Provides structure by determining dates for specific (sub) goals Reviewing milestones (is the goal achieved?) provides project status

21. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Milestones Important events or deliverables goals, sub goals, completion of sub projects that must be achieved within the project Motivation factor for team members success factor - goal/date achieved (positive) stress factor - getting it done Often result in monetary reward external projects - payment goal project team - bonus payments

22. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Milestone Definition Project name and number Project Manager’s name Milestone number (hierarchical) Milestone name Person responsible for milestone Milestone definition and deliverables Pre-requisites (preceding WPs) Space for signatures (Milestone is often contract event ~ payment) Particularly important for matrix management - shared responsibility between PjM and Line Management

23. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Milestone - Sample Def. Date !

24. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005

25. Sequence Planning Precedes the actual project plan Determines the sequence in which work must be done Can be diagrammed as Histogram (Balken Diagramm) ~ Gantt Network Diagram (Netzplan) ~ PERT “As much detail as necessary, as little as possible”

26. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Gantt Chart Easy to read Needs precision Needs detail Does not normally show dependencies Add dependencies (MS Project) to really understand what’s happening 12345678910101 1212 1313 1414 1515 1616 1717 1818 Week Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 MaryTim Mary Tim John Tim Charlie Demo CeBIT Tim John

27. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Network Diagram More precision Better suited to large projects Requires PjMt Software Needs experience, feeling for appropriate level of detail Project team often have difficulty understanding PERT Diagrams Task E Res: 1Dur: 8 Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3

28. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Types of Network Diagrams Critical Path Method (CPM) Tasks and arrows net [Vorgangspfeilnetz] Program Evaluation and Review Technique (PERT) Event node net [Ereignisknotennetz] Metra Potential Method (MPM) Task node net [Vorgangknotennetz] Methodology Gurus !

29. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Finally - MS Project Milestone with Date Sub Project Tasks Dependencies Project Duration Time Line WBS

30. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Dependency Rules The first WP has no predecessor [Vorgänger] The last WP has no successor [Nachfolger] All other WPs have at least one predecessor and one successor Left to right (like Top-Down) Right to left (like Bottom-UP), as check

31. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005

32. Creating the Network I A1.1 A1.2 A1.3 A1.4 A2.1 A2.2 A2.3 A3.1 A3.2 B1.1 B1.2 B1.3

33. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Creating the Network II A1.1 A1.2 A1.3 A1.4 A2.1 A2.2 A2.3 A3.1 A3.2 B1.1 B1.2 B1.3

34. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Dependencies I AB A B End to Start [Ende-Anfang] [Normalfolge]

35. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Dependencies II AB A B Start to Start [Anfang-Anfang] [Anfangsfolge]

36. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Dependencies III AB A B End to End [Ende-Ende] [Endfolge]

37. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Dependencies IV AB A B Start to End [Anfang-Ende] [Sprungfolge] ?

38. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Dependencies V AB A B+ Time Lags [Zeitverschiebungen] +/- 5d +5d -5d B-

39. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Dependencies - Summary Ende-Anfang (EA) Anfang-Anfang (AA) Ende-Ende (EE) Anfang-Ende (AE) +/- Zeitverschiebung Anfang B gekoppelt an Ende A Anfang B gekoppelt an Anfang A Ende B gekoppelt an Ende A Ende B gekoppelt an Anfang A

40. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 As early as possible End no earlier than End no later than As late as possible Start not earlier than Start not later than Must end by Must start by WP Time Constraints Flexible Constraints Fixed Constraints Beware the mouse in MSP Gantt Charts !

41. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Buffers and Puffers Latest Start minus Earliest Start Latest Finish minus Earliest Finish Float (Slack) = one of the above Duration Earliest Start Date Earliest Finish Date Duration Latest Start Date Latest Finish Date Float

42. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Critical Tasks Tasks where the earliest and latest dates are identical (ES=LS or EF=LF) Tasks with no float or slack Delays directly effect project completion Critical Path is sequence of critical tasks Float and (therefore) critical tasks are calculated by the Front Pass, Back Pass

43. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005

44. Task E Res: 1Dur: 8 Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3 ES: 8/11 EF: 12/11 Project begins 1/11, therefore Earliest Start for Task A is 1/11 Task H still cannot be calculated, as all preceding tasks have not been calculated. Earliest Finish of Task E is noted Task A finishes 3/11 (start 1/11, 3 days duration), therefore Earliest Start for Task F is 4/11 Task C finishes 10/11, (Start 9/11, 2 days duration) therefore Earliest Start for Task D is 11/11 Task H cannot be calculated, as all preceding tasks have not been calculated. Earliest Finish of Task D is noted Task B finishes 8/11, (Start 4/11, 5 days duration) therefore Earliest Start for Task E is 9/11 Task A finishes 3/11 (start 1/11, 3 days duration), therefore Earliest Start for Task B is 4/11 CPM - Front Pass I ES: 1/11 ES: 4/11ES: 9/11 Task B finishes 8/11, (Start 4/11, 5 days duration) therefore Earliest Start for Task C is 9/11 ES: 11/11 EF: 17/11 ES: 9/11 EF: 16/11 ES: 4/11 Task F finishes 7/11, (Start 4/11, 4 days duration) therefore Earliest Start for Task G is 8/11. In order to calculate ES for Task H, The EF is also noted

45. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Task E Res: 1Dur: 8 Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3 CPM - Front Pass II ES: 1/11 ES: 4/11ES: 9/11ES: 11/11 EF: 17/11 ES: 9/11 EF: 16/11 ES: 4/11ES: 8/11 EF: 12/11 Task H cannot commence before all preceding tasks are completed Task D has an Early Finish date of 17/11 Task E has an EF of 16/11 Task G has an EF of 12/11 Therefore, the earliest start date (ES) for Task H is 18/11 The EF date for Task H is 20/11 (ES 18/11 + 3 days duration) The EF for the last task is also the earliest finish date (EF) for the project EF: 20/11ES: 18/11 Project Duration: 1/11- 20/11

46. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Task E Res: 1Dur: 8 Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3 CPM - Back Pass I ES: 1/11 ES: 4/11ES: 9/11ES: 11/11 ES: 9/11 ES: 4/11ES: 8/11 In the Back Pass, the same methodology is applied to calculate the latest possible dates by which activities can finish, without delaying the finish date of the project. Task H is the last task in the project. If Task H can be completed by the EF date, then there will be no delay to the project. Therefore the EF of Task H can be used as a latest finish date (LF) for Task H, without impairing project completion EF: 20/11 Project Duration: 1/11- 20/11 LF: 20/11 ES: 18/11

47. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Task E Res: 1Dur: 8 Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3 CPM - Back Pass II LF: 10/11LF: 8/11 LF: 12/11 ES: 1/11 ES: 4/11ES: 9/11ES: 11/11 ES: 9/11 ES: 4/11ES: 8/11 LF: 20/11 ES: 18/11 The latest start date (LS) for Task H is 18/11 (LF 20/11, less 3 days duration), therefore Latest Finish for Tasks D, E and G is 17/11, if project completion is not to be impaired LF: 17/11 Latest Finish for Task B must reflect the earlier of the latest start dates of its succeeding Tasks: LS Task C is 9/11 (LF - 2 days) LS Task E is 10/11 (LF - 8 days). Therefore LF Task B is 8/11 LS Task G is 13/11 (LF - 5 days), therefore LF Task F is 12/11 LF: 3/11 Latest Finish for Task A must reflect the earlier of the latest start dates of its succeeding Tasks: LS Task B is 4/11 (LF - 5 days) LS Task E is 9/11 (LF - 4 days). Therefore LF Task A is 3/11 The latest start date for Task A (and therefore the project) is 1/11 if the completion date is not to be impaired LS for Task D is 11/11, (LF 17/11, less 7 days duration) therefore Latest Finish for Task C is 10/11

48. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Task E Res: 1Dur: 8 Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3 CPM - Critical Path I LF: 10/11LF: 8/11 LF: 12/11 ES: 1/11 ES: 4/11ES: 9/11ES: 11/11 ES: 9/11 ES: 4/11ES: 8/11 LF: 20/11 ES: 18/11 LF: 17/11 LF: 3/11 Float 0 Float = LF - (ES + duration) Task A 3/11 - (1/11 + 3 days) 3/11 - (3/11) Float = 0 Float 0 Float 0 Float 0 Float 1 Float 5 Float 5 Float 0

49. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 CPM - Critical Path II Task E Res: 1Dur: 8 Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3 LF: 10/11LF: 8/11 LF: 12/11 ES: 1/11 ES: 4/11ES: 9/11ES: 11/11 ES: 9/11 ES: 4/11ES: 8/11 LF: 20/11 ES: 18/11 LF: 17/11 LF: 3/11 Float 0 Float 0 Float 0 Float 0 Float 1 Float 5 Float 5 Float 0 Task A Res: 2Dur: 3 ES: 1/11 LF: 3/11 Float 0 Task B Res: 2Dur: 5 LF: 8/11 ES: 4/11 Float 0 Task C Res: 1Dur: 2 LF: 10/11 ES: 9/11 Float 0 Task D Res: 1Dur: 7 ES: 11/11 LF: 17/11 Float 0 Task H Res: 3Dur: 3 LF: 20/11 ES: 18/11 Float 0

50. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 CPM - Dynamic CP I Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3 LF: 10/11LF: 8/11 LF: 12/11 ES: 1/11 ES: 4/11ES: 9/11ES: 11/11 ES: 9/11 ES: 4/11ES: 8/11 LF: 20/11 ES: 18/11 LF: 17/11 LF: 3/11 Float 0 Float 0 Float 0 Float 0 Float 1 Float 5 Float 5 Float 0 Task E Res: 1Dur: 8 Task E1 Res: 1Dur: 2 ES: 9/11 LF: 17/11 Float 1 Task E1 Res: 1Dur: 2 ES: 17/11 LF: 18/11 Float 0 ES: 19/11 LF: 21/11 LF: 18/11 Float 1 LF: 18/11 Float 6 LF: 16/11 Float 0 LF: 13/11 Float 6 LF: 11/11 Float 1 LF: 8/11 Float 0 LF: 3/11 Float 0

51. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 CPM - Dynamic CP II Task H Res: 3Dur: 3 Task G Res: 2Dur: 5 Task F Res: 2Dur: 4 Task D Res: 1Dur: 7 Task C Res: 1Dur: 2 Task B Res: 2Dur: 5 Task A Res: 2Dur: 3 LF: 10/11LF: 8/11 LF: 12/11 ES: 1/11 ES: 4/11ES: 9/11ES: 11/11 ES: 9/11 ES: 4/11ES: 8/11 LF: 20/11 ES: 18/11 LF: 17/11 LF: 3/11 Float 0 Float 0 Float 0 Float 0 Float 1 Float 5 Float 5 Task E Res: 1Dur: 8 Task E1 Res: 1Dur: 2 ES: 17/11 LF: 18/11 Float 0 ES: 19/11 LF: 21/11 LF: 18/11 Float 1 LF: 18/11 Float 6 LF: 16/11 Float 0 LF: 13/11 Float 6 LF: 11/11 Float 1 LF: 8/11 Float 0 LF: 3/11 Float 0 Float 0 Task E1 Res: 1Dur: 2 ES: 17/11 LF: 18/11 Float 0 Task H Res: 3Dur: 3 Float 0 ES: 19/11 LF: 21/11 ES: 9/11 Task E Res: 1Dur: 8 LF: 16/11 Float 0 Task B Res: 2Dur: 5 ES: 4/11 LF: 8/11 Float 0 Task A Res: 2Dur: 3 ES: 1/11 LF: 3/11 Float 0

52. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005

53. Resource Planning I Distinguish between effort [Aufwand] and duration [Dauer] Remember this? “If it takes 5 men 10 days to dig a hole, how long will 10 men need?” Duration 10 Men 5 Men Duration Fixed Effort e.g. digging a hole Duration Fixed Duration e.g. Test under load

54. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Resource Planning II Work Packages as basis WP Owner estimates effort, resources Best guess (based on experience, tools) Ask the people doing the work Include testing, quality and documentation! People-Effort in person-days, person-hours Equipment in units or %age usage Duration = Effort/Resources in weeks, days, hours

55. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Resource Planning III Tasks, activities within WP are listed Resources (duration, number) defined Allocation Duration WP Duration

56. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Insurance Not (Yet) Allocated Resources (NYA) Time and Money for items not yet recognised Separate Task Include in plan and in reporting Reduce (as needed) by allocating resources to other tasks and activities Allows isolated budget overruns without overall project overrun Do not waste these not yet allocated resources - if not needed, deliver the project early!

57. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Example: Not yet allocated Proposal Task Budget (Days) A20 B20 C20 Test, Bug Fixing20 Project Mngt20 100 Contingency (10%)10 110 Execution TaskActivitiesBudget (Days) AA15 A23 A34 A43 15 BB12 B28 B35 15 CC1 10 C25 15 TTest, Bug Fixing 15 15 PMProject Management 20 20 NYANot allocated (20%) 20 20 CTContingency (10%) 10 10 110

58. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005

59. Cost Planning Detailed cost planning vs. Budget Work Packages as basis Use accounting/controlling classification

60. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Optimising the Plan Improve on completion date Optimise resource usage Juggle Dates Concentrate on (dynamic) Critical Path Resources Under utilised resources cost money, over utilised are less productive and/or sick Costs Replace expense resources with less expensive

61. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Risk Analysis Life - and projects - is full of risk! Identify risks Financial, organisational and technical Use WBS to ask What can possibly go wrong? (Murphy) What assumptions may be incorrect? How can risk be avoided? What would be the effect? How can effects be minimised?

62. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Penalty clauses [Konventionalstrafen] Customer Insolvency Increased salaries Legal changes Increased supplier costs Planning too optimistic Loss / unavailability of staff Badly defined requirements Delays / overruns Types of Risk Financial Risk Organisational Risk Technical Risk New methods / processes New products New applications New technologies Equipment failures

63. All rights reserved. Colm Toolan, Business Architect. 2001 - 2005 Contact Information Colm Toolan, Business Architect Isarweg 35 24146 Kiel Colm(full stop)toolan(funny symbol)toolan(full stop)de T: +49 431 7859 - 737 F: -738 M: +49 171 6450 998