3.1
3.2
The Importance of Planning



The key to a successful project is in planning.
Often project planning is ignored to rush in for the
work.
The value of project planning:



Reduce delays
Reduce re-work and waste
Reduce issues
3.3
Agenda



Purpose of Planning Process
Planning Processes
Deliverable


Project Management Plan
Class Exercises
3.4
Project Management Process
Groups
Monitoring & Controlling Processes
Initiating
Process
Planning
Process
Executing
Process
Closing
Process
3.5
Purpose of Planning Process
Establish the total scope of the effort, define and
refine the objectives, and develop the course of
action required to attain those objectives.
PMBOK Fifth Edition
3.6
Planning Processes
3.7
3.8
Develop Project Management Plan
The process of defining, preparing and coordinating
all subsidiary plans and integrating them into a
comprehensive project management plan
3.9
Project Management Plan
Purpose
 Integrates and
consolidates subsidiary management
plans
 Defines how work will be executed to accomplish project
objectives
 Documents how changes will be monitored and
controlled
 Define key management reviews as to content, extent,
and timing for issues and decisions
 Addresses change management to handle
documentation, tracking and approval needs of the
project
3.10
Develop Project Management Plan
INPUT
• Project charter
• Outputs from other
processes
• Enterprise
environmental factors
• Organizational
process assets
PROCESS
Develop project
management plan.
OUTPUT
• Project management
plan
TOOLS & TECHNIQUES
• Expert judgment
• Facilitation techniques
3.11
Project Management Plan
Subsidiary Plans








Communications management plan
Cost management plan
Human resource plan
Procurement management plan
Process improvement plan
Quality management plan
Requirements management plan
Risk management plan







Schedule management plan
Scope management plan
Stakeholder management plan
Cost baseline
Schedule baseline
Scope baseline
Project management plan updates
3.12
Planning Process is Dynamic

Nature of project management creates repeated
feedback loops for additional analysis

As more project information or characteristics are
understood, additional planning may be required

Progressive detailing of the project management plan
a.k.a. “Rolling Wave Planning” is an iterative and
ongoing process
3.13
Progressive Elaboration Technique
 Continuously
improving and detailing a plan as more
specific information and more accurate estimates
become available, thereby producing more accurate and
complete plans that result from the successive iterations
of the planning process.
 Not to
be confused with “scope creep”
3.14
3.15
Almost all project failures are
due to poor stakeholder
management.
Stakeholder satisfaction is a
key objective for all projects.
3.16
Project Stakeholder Management
Activities include:







Identifying stakeholders
Analyzing stakeholder expectations and their impact on
the project
Developing appropriate management strategies for
effectively engaging stakeholders in project decisions
and execution
Continuous communication with stakeholders to
understand their needs and expectations
Addressing issues as they occur
Managing conflicting interests
Fostering appropriate stakeholder engagement in
project decisions and activities
3.17
Project Stakeholder Management
Processes
INITIATING
• Identify
stakeholders
PLANNING
• Plan
stakeholder
management
EXECUTING
• Manage
stakeholder
engagement
MONITORING &
CONTROLLING
• Control
stakeholder
engagement
3.18
Plan Stakeholder Management

The process of developing appropriate management
strategies to effectively engage stakeholders
throughout the project life cycle, based on the analysis
of their needs, interests, and potential impact on
project success.
3.19
Plan Stakeholder Management
INPUT
• Project management
plan
• Stakeholder register
• Enterprise
environmental factors
• Organizational
process assets
PROCESS
Plan stakeholder
management.
OUTPUT
• Stakeholder
management plan
TOOLS & TECHNIQUES
• Expert judgment
• Meetings
• Analytical techniques
3.20

Develop a stakeholder management plan for
your project.
3.23
3.24
Managing the project scope is
primarily concerned with defining
and controlling what is and is not
included in the project.
What is not in scope is almost more
important than what is in scope.
3.25
Project Scope Management

Processes required to ensure that the project includes
all the work required, and only the work required, to
complete the project successfully
3.26
Project Scope Management
Processes
PLANNING
• Plan scope
management
• Collect
requirements
• Define scope
• Create WBS
MONITOR ING &
CONTROLLING
• Validate scope
• Control scope
3.27
Project Scope Management
Processes
 Plan Scope Management – the process of creating a scope
management plan that documents how the project scope
will be defined, validated, and controlled
 Collect Requirements – the process of determining,
documenting, and managing stakeholder needs and
requirements to meet project objectives
 Define Scope – the process of developing a detailed
description of the project and product
 Create WBS – the process of subdividing project
deliverables and project work into smaller, more
manageable components
3.28
Plan Scope Management
PROCESS
OUTPUT
INPUT
• Project management
plan
• Project charter
• Enterprise
environmental factors
• Organizational
process assets
Creating a scope
management plan that
documents how the project
scope will be defined,
validated, and controlled.
• Scope management
plan
• Requirements
management plan
TOOLS & TECHNIQUES
• Expert judgment
• Meetings
3.29
Collect Requirements
PROCESS
INPUT
• Scope management
plan
• Requirements
management plan
• Stakeholder
management plan
• Stakeholder register
OUTPUT
Determining, documenting,
and managing stakeholder
needs and requirements to
meet project objectives
• Requirements
documentation
• Requirements
traceability matrix
TOOLS & TECHNIQUES
• Interviews/focus groups
• Facilitated workshops
• Group creativity techniques
• Group decision-making techniques
• Questionnaires
• Observations
• Benchmarking
• Document analysis
3.30




List project requirements on post it notes /
flipchart.
Prioritize requirements (low, med, high)
Complete the Requirements Traceability
Matrix for high priority requirements.
Present to group.
3.31
Define Scope
INPUT
• Scope management
plan
• Project charter
• Requirements
documentation
• Organizational
process assets
PROCESS
Developing a detailed
description of the project and
product.
OUTPUT
• Project scope
statement
• Project documents
update
TOOLS & TECHNIQUES
• Expert judgment
• Product analysis
• Alternatives generation
• Facilitated workshops
3.32
Create WBS (Work Breakdown Structure)
INPUT
• Scope management
plan
• Project scope
statement
• Requirements
documentation
• Enterprise
environmental factors
•Organizational
process assets
PROCESS
Subdividing project
deliverables and project work
into smaller, more
manageable components.
OUTPUT
• Scope baseline
• Project documents
update
TOOLS & TECHNIQUES
•Decomposition
•Expert judgment
3.33
Work Breakdown Structure
(WBS)

Deliverable-oriented hierarchical decomposition of the
work to be executed to accomplish project objectives and
create the required deliverables

Each descending level of the WBS represents an
increasingly detailed definition of the project work

WBS organizes and defines the total scope of the project
and represents the specified work in the scope statement
3.34
WBS Decomposition Technique

Subdivision of project deliverables into smaller, more
manageable components until work and deliverables are
defined to the work package level

A work package is the lowest level in the WBS and refers to
work products or deliverables and not the effort itself

A work package can be sub-divided into activities to be
scheduled, cost estimated, monitored and controlled
3.35
Scope Baseline
 Project scope statement
 Includes the description of the project scope, major
deliverables, assumptions, and constraints
 WBS
 Defines each deliverable and the work packages
 WBS Dictionary
 Provides detailed deliverable, activity, and scheduling
information about each component
3.36
SAMPLE WBS
Project Mgr
Development
Program
1.0
2.0
3.0
4.0
Project Mgmt
Program Design
Core Curriculum
Program Mgmt
2.1
Needs
Assessment
3.1
4.1
Trainers Obtained
Program
Resources
3.2
4.2
Program Proposal
Training Content
& Materials
Evaluation &
Feedback System
2.3
3.3
Program Approval
Pilot
2.2
3.37
Sample WBS Table
Project Management Development Program
1.0 Project Management
1.1 Project Charter
1.2 Project Management Plan
2.0 Program Design
2.1 Needs Assessment
2.2 Program Proposal
2.3 Program Approval
3.38


Create WBS for team project.
Present to group.
3.39
3.40
Project Risk Management


Conducting risk management planning, identification,
analysis, response planning, and controlling risk on a
project
Objectives are to increase the likelihood and impact of
positive events, and decrease the likelihood and impact
of negative events in the project
3.41
Risk Management
What is Project Risk?
A future uncertain event or condition that, if it occurs,
has an effect on at least one project objective (time,
cost, scope, quality).
Time
Risk
Cost
Quality
Scope
3.42
3.43
Project Risk Management
Processes
PLANNING
• Plan risk
management
• Identify risks
• Perform
qualitative risk
analysis
• Perform
quantitative risk
analysis
• Plan risk
responses
MONITOR ING &
CONTROLLING
• Control risks
3.44
Identify Risks
INPUT
•Risk management plan
•Cost management plan
•Schedule management
plan
•Quality management
plan
•Human resource
management plan
•Scope baseline
•Activity cost estimates
•Activity duration
estimates
•Stakeholder register
•Project documents
•Procurement documents
•Enterprise
environmental factors
•Organizational process
assets
PROCESS
Determining which risks
might affect the project and
documenting their
characteristics
OUTPUT
•Risk register
TOOLS & TECHNIQUES
•Documentation reviews
•Info gathering techniques
•Checklist analysis
•Assumptions analysis
•SWOT analysis
•Expert judgment
3.45
Risk Identification
May reveal common root causes:
 Sources of risk
 Area or deliverable(s) affected
Types of risks:
Organizational
External
Technical
Project
Management
Dependencies
Regulatory
Requirements
Estimating
Technology
Resources
Competitors
Suppliers
Funding
Customer
Complexity
Interfaces
Performance
Planning
Controlling
Communication
Reliability
Priority
Acts of God
Quality
Change Management
3.46
Risk Categorization
Identify and categorize risk
Low
Impact
Moderate
Impact
High
Impact
Cost
< 10% Cost
Increase
10-40% Cost
Increase
>40% Cost
Increase
Schedule
< 10% Time
Increase
10-40% Time
Increase
> 40% Sched
Slippage
Scope
Minor Areas
Affected
Major Areas
Affected
Reduction
Unacceptable
Quality
Demanding
Appls affected
Requires Client
Approval
Reduction
Unacceptable
3.47
Risk Assessment
High
Probability
Risk D
Risk A
Risk C
Risk E
Risk B
Low
Low
Impact
High
3.48





Identify risks for team project on post its.
Perform qualitative risk analysis using
matrix.
Determine which ones you need to plan for.
Document in risk register.
Present to group.
3.49
3.50
Project Time Management

The processes required to manage the timely completion
of the project
3.51
Project Time Management
Processes
PLANNING
• Plan schedule
management
• Define activities
• Sequence
activities
• Estimate activity
resources
• Estimate activity
durations
• Develop
schedule
MONITOR ING &
CONTROLLING
• Control schedule
3.52
 Do we want to include a “Define Activities” slide
using your process chart format?
 Inputs: Schedule Management Plan, Scope Baseline,
Enterprise Environmental Factors, Organizational
Process Assets
 Tools and Techniques: Decomposition, Rolling Wave
Planning, Expert Judgment
 Outputs: Activity List, Activity Attributes, Milestone
List
3.53
Sequence Activities
INPUT
•Schedule management
plan
•Activity list
•Activity attributes
•Milestone list
•Project scope statement
•Enterprise
environmental factors
•Organizational process
assets
PROCESS
Identifying and documenting
relationships among the project
activities. Defines the logical
sequence of work to obtain the
greatest efficiency given all
project constraints.
OUTPUT
•Project schedule
network diagrams
(PERT)
•Project document
updates
TOOLS & TECHNIQUES
•Precedence diagramming method
(PDM)
•Dependency determination
•Leads and lags
3.54
Activity Sequencing
Logical sequencing of activities shows the relationships
among the activities and the dependencies.
A
B
C
Start
Finish
D
E
F
3.55
Activity Sequencing
PM Fundamentals ver 4.062009
3.56


Using post-its, create PERT for team
project.
Present to group.
3.57
Develop Schedule
INPUT
•Schedule management
plan
•Activity list
•Activity attributes
•Project schedule
network diagrams
•Activity resource
requirements
•Resource calendars
•Activity duration
estimates
•Project scope statement
•Risk register
•Project staff
assignments
•Resource breakdown
structure
•Enterprise
environmental factors
•Organizational process
assets
PROCESS
Identifying and documenting
relationships among the project
activities. Defines the logical
sequence of work to obtain the
greatest efficiency given all
project constraints.
OUTPUT
•Schedule baseline
•Project schedule
•Schedule data
•Project calendars
•Project management
plan updates
•Project document
updates
TOOLS & TECHNIQUES
•Precedence diagramming method
(PDM)
•Dependency determination
•Leads and lags
3.58
Project Time Management Charts

Milestone Charts (HG Report out Template)


Bar Charts (MS Project – show graph from LG
group report out)



Show only start or end date of major deliverables
Activity start and end dates
Durations
Project schedule network diagrams (PERT)



Diagrams network logic
Activity dates
Critical path activities
3.59
Bar Chart




Shows activity start and finish dates
Shows expected durations
May show dependencies
Relatively easy to read and frequently used in
management presentations
3.60
Bar Chart
3.61
Milestone Chart
Event
Jan
Feb
Mar
Apr
May
Jun
Aug
Subcontracts Signed
Specifications finalized
Design Reviewed
Subsystem Tested
First Unit Delivered
Production Plan Completed
Planned
Actual
3.62
Milestone vs. Bar Chart

Bar Chart: A graphical display of project elements,
dates and durations (Project Team)

Milestone Chart: A graphical display of significant
events in the project, usually completion of major
deliverables (Executive Management)
3.63

Create a milestone chart for the team
project.
3.64
Critical Path Methodology (CPM)

A schedule network analysis technique used to determine
the amount of schedule flexibility (amount of float) on
various logical network paths in the project schedule
network

Critical path determines the duration of longest path
through the project
3.65
Critical Path
Early Start
Example:
 Project with 6 activities
 Shows logical relationships (dependencies)
of the activities
 Shows durations
Activity
Duration
A+B+D+F=?
A+C+D+F=?
A+C+E+F=?
Late Start
B
A
Early Finish
4
D
Late Finish
5
1
F
C
2
E
3
3
3.66
Critical Path
Early Start
Example:
 Project with 6 activities
 Shows logical relationships (dependencies)
of the activities
 Shows durations
Activity
Duration
A + B + D + F = 13
A + C + D + F = 11
A+C+E+F=9
Late Start
B
A
Early Finish
4
D
Late Finish
5
1
F
C
2
E
3
3
3.67

Identify critical path for your team project.
3.68
Schedule Compression
Shortens project schedule without changing
project scope

Crashing – Obtain the greatest compression for
the least incremental cost (cost and schedule
tradeoffs.) Does not always produce a viable
alternative.

Fast Tracking – Doing phases or activities in
parallel that would normally be done in sequence.
May result in increased project risks and rework.
3.69



After developing the project schedule, you
find that the project team’s projected
completion date is not aligned with the
sponsor’s “target end date”.
Discuss what can be done to resolve the
gap.
Share with the group.
3.70
3.71
Project Cost Management
Processes involved in planning, estimating, budgeting,
financing, funding, managing, and controlling costs so
that the project can be completed within the approved
budget.
3.72
Project Cost Management
Processes
PLANNING
• Plan cost
management
• Estimate costs
• Determine
budget
MONITOR ING &
CONTROLLING
• Control costs
3.73
Estimate Costs
INPUT
•Cost management
plan
•Human resource
management plan
•Scope baseline
•Project schedule
•Risk register
•Enterprise
environmental factors
•Organizational
process assets
PROCESS
Developing an approximation of
the costs of the resources
needed to complete project
activities.
OUTPUT
•Activity cost
estimates
•Basis of estimates
•Project documents
updates
TOOLS & TECHNIQUES
•Expert judgment
•Analogous estimating
•Parametic estimating
•Bottom-up estimating
•3-point estimating
•Reserve analysis
•Cost of quality
•Vendor bid analysis
•Group decision-making techniques
3.74
Determine Budget
INPUT
•Cost management plan
•Scope baseline
•Activity cost estimates
•Basis of estimates
•Project schedule
•Resource calendars
•Risk register
•Agreements
•Organizational process
assets
PROCESS
Aggregating the estimated costs
of individual activities or work
packages to establish an
authorized cost baseline.
OUTPUT
•Cost baseline
•Project funding
requirements
•Project documents
updates
TOOLS & TECHNIQUES
•Cost aggregation
•Reserve analysis
•Expert judgment
•Historical relationships
•Funding limit reconciliation
3.75
Pricing Model
Why is forecasting important?
Bid Price
Profit Margin
Estimate w/
Contingency
Risk (Mgmt) Reserve
Estimated
Cost
3-5% of BAC
Project Manager Reserve
3-5% of BAC
(Estimate Error)
Project Management Overhead
5-10% of Costs
BAC
Work Breakdown Structure (WBS)
Bottom up
Estimation
3.76

Using the Bottom-up Cost Estimating
Worksheet, take the deliverables and make
cost estimates.
3.77
3.78
Project Quality Management
Includes the process and activities that determine
quality policies, objectives, and responsibilities so that
the project will satisfy the needs for which it was
undertaken.
3.79
Project Quality Management
Processes
PLANNING
• Plan quality
management
EXECUTING
• Perform quality
assurance
MONITOR ING &
CONTROLLING
• Control quality
3.80
Plan Quality Management
INPUT
PROCESS
•Project management plan
•Stakeholder register
Identifying quality requirement
•Risk register
and/or standards for the project
•Requirements
and its deliverables, and
documentation
documenting how the project
•Enterprise environmental
will demonstrate compliance
factors
with relevant requirements.
•Organizational process
assets
OUTPUT
•Quality management
plan
•Process improvement
plan
•Quality metrics
•Quality checklists
•Project documents
updates
TOOLS & TECHNIQUES
•Cost-benefit analysis
•Cost of quality
•Seven basic quality tools
•Benchmarking
•Design of experiments
•Statistical sampling
•Additional quality
planning tools
•Meetings
3.81

Document quality standards for team
project.
3.82
3.83
Project Human Resource
Management
Processes that organize, manage, and lead the project
team.
3.84
Project Human Resources
Management Processes
PLANNING
• Plan human
resource
management
EXECUTING
• Acquire
project team
• Develop
project team
• Manage
project team
3.85
Plan Human Resource Management
INPUT
•Project management
plan
•Activity resource
requirements
•Enterprise
environmental factors
•Organizational process
assets
PROCESS
Identifying and documenting
project roles, responsibilities,
required skills, reporting
relationships, and creating a
staffing management plan.
OUTPUT
•Human resource
management plan
TOOLS & TECHNIQUES
•Org charts & position descriptions
•Networking
•Organizational theory
•Expert judgment
•Meetings
3.86
Responsibility Assignment Matrix
3.87

Create responsibility assignment matrix for
team project.
3.88
3.89
Project Communications
Management
 Includes the processes that are required to ensure timely
and appropriate planning, collection, creation,
distribution, storage, retrieval, management, control,
monitoring, and the ultimate disposition of project
information.
3.90
Project Communications
Management Processes
PLANNING
• Plan
communications
management
EXECUTING
• Manage
communications
MONITORING &
CONTROLLING
• Control
communications
3.91
Plan Communications Management
PROCESS
OUTPUT
INPUT
•Project management
plan
•Stakeholder register
•Enterprise
environmental factors
•Organizational process
assets
Developing an appropriate
approach and plan for project
communications based on
stakeholder’s information needs
and requirements, and available
organizational assets.
•Communications
management plan
•Project documents
updates
TOOLS & TECHNIQUES
•Communications requirements analysis
•Communication technology
•Communication models
•Communication methods
•Meetings
3.92
Project Communications
Management
The project manager is responsible for
which percent of communication on a
project?
75% or more
 85% or more
 95% or more

The communication plan helps facilitate
project communication and expectations
for all stakeholders.
3.93

Create communication plan for team
project.
3.94
3.95
Project Procurement Management

Purchase or acquire the products, services, or results,
needed from outside the project team

Includes contract management and change control
processes required to develop and administer contracts
or purchase orders issued by authorized project team
members
3.96
Project Procurement Management
Processes
PLANNING
• Plan
procurement
management.
EXECUTING
• Conduct
procurements.
MONITORING &
CONTROLLING
• Control
procurements
CLOSING
• Close
procurements
3.97
Plan Procurement Management
PROCESS
OUTPUT
INPUT
•Project management plan
•Requirements
documentation
•Risk register
•Activity resource
requirements
•Project schedule
•Activity cost estimates
•Stakeholder register
•Enterprise environmental
factors
•Organizational process
assets
Developing an appropriate
approach and plan for project
communications based on
stakeholder’s information needs
and requirements, and available
organizational assets.
TOOLS & TECHNIQUES
•Procurement
management plan
•Procurement statement
of work
•Procurement documents
•Source selection criteria
•Make-or-buy decisions
•Change requests
•Project documents
updates
•Make-or-buy analysis
•Expert judgment
•Market research
•Meetings
3.98

Identify procurement needs for team
project.
3.99
Summary of Session 3 (Planning)
Project Management Plan Subsidiary Plans








Communications management plan
Cost management plan
Human resource plan
Procurement management plan
Process improvement plan
Quality management plan
Requirements management plan
Risk management plan







Schedule management plan
Scope management plan
Stakeholder management plan
Cost baseline
Schedule baseline
Scope baseline
Project management plan updates
3.100
The project management plan is a
“living document”.
There will be changes along the way,
therefore update your plan as the
project progresses and measure
progress against the plan.
3.101