Fundamentals of Project Planning and Management Module 2 Slide Handout
Fundamentals of
Project Planning and
Management
Week 2: Project Planning
Yael Grushka-Cockayne
Fundamentals of
Project Planning and Management
Week 1
Define and
Organize
Week 2
Plan
Project Goal
The Three
Objectives
and their
Priorities
Organization
Project
Scoping
Dependencies
Schedule
Trade-Offs
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Drucker’s Effective Executive
An (action) Plan is:
• Statement of intentions ≠Commitment
• Not a straitjacket
• Should be revised often
• Should anticipate the need to be flexible
• Needs a system for checking the results against expectations
• Becomes the basis for executive time management
(Drucker 2006 )
Project Life-Cycle
Initiate
Plan
Execute
Close
•Establish
organization
•Project Charter
and Definition
•Identify Scope
•Identify tasks,
dependencies
and schedule
•Plan resources
•Clarify tradeoffs and
decision
making
principles
•Develop a risk
management
plan
•Monitor
•Communicate
and report
•Correct and
control
•Sign off
•Conduct a
formal postmortem
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Project Life-Cycle
Initiation
Planning
Execution
Close-out
Execution
Initiation
Planning
Execution
Close-out
Work Breakdown Structure
• Visually breaks down project scope
o Project
o Subprojects
o Work packages
o Activities / Tasks
It might start messy….
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Work Breakdown Structure: Example
Work Breakdown Structure: Example
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Work Breakdown Structure: Example
Lumi Project
Start
Packaging
Liquid
Labeling
Facility
HR
Bottles
Design Process
Marketing & Sales
Closure
Finance
Produce Sourcing
Secondary Packaging
IT
Product Rolling off
HPP/Ready for wholesale
HACCP
Lumi Project
Start
Packaging
Facility
Labeling
Scout location
Plant
Decide location &
sign lease
Prep for build out
Buy Prep tables and
sinks
Compressed air
Electrical
Find labs for
analysis
Lab Analysis
HPP Installation,
commissioning and
training
File & pay for UPC
Cold Storage
purchase
Label redesign
Water
Internet (for HPP)
Closure
Order bottles
Order closures
Secondary Packaging
Plant operational
Equipment
HPP delivery
Utilities
Bottles
Find label supplier
Choose shipping
box supplier
Order shipping
boxes
Choose distributor
(check with
wholefoods)
Finalize design
Cold Storage install
Order labels
Press Right Juicers
delivery and
installation
Liquid
Batch tank
Define product line
Filler, capper,
labeler
Fork lift
HR
Drying racks
Hire work crew
Soaking bins
Hire Ops Mgr.
Design Process
Marketing & Sales
Research designs
SOP
Finalize process
Finance
Lease HPP machine
Estimate demand
(juice sales at
wholefoods,
wholefoods store
counts)
COGS analysis
Set price
Insurance on plant
prop and equip
Produce Sourcing
Get price schedule
from produce
suppliers
IT
Set up Quickbooks
online
Set up MS Project
Order produce
Product Rolling off
HPP/Ready for
wholesale
HACCP
Hire Consultant
File for approval
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Build Capabilities
Build Infrastructure
Systems Development
Locate Offices
Design Datacentre
Project Initiation
Equip Offices
Procure Facilities
Requirements
Analysis
Recruit Business
Management Team
Recruit Development
Team
Recruit Infrastructure
Team
Capabilities
Complete
Procure Equipment
Commission Data
Centre
System Design
System Build
Test Infrastructure
System Test
Deploy
Infrastructure
Deploy System
Infrastructure
Complete
System Stabilisation
Systems
Development
Complete
Business Process Design
Project Initiation
Develop Process
Measurement
Framework
Build In-Service Support
Team
Factory Online
7E7 First Flight
7E7 In Service
Inventory Management
Process
Logistics Management
Process
Integrated Demand
Planning Process
Straight Through
Production Process
Integrated Product
Design Process
Design Process
Design Process
Design Process
Design Process
Design Process
Simulate & Validate
Process
Simulate & Validate
Process
Simulate & Validate
Process
Simulate & Validate
Process
Simulate & Validate
Process
Information System
Integration
Information System
Integration
Information System
Integration
Information System
Integration
Information System
Integration
Pilot Process
Pilot Process
Pilot Process
Pilot Process
Pilot Process
Adjust Process
Design
Adjust Process
Design
Adjust Process
Design
Adjust Process
Design
Adjust Process
Design
Rollout Process
Rollout Process
Rollout Process
Rollout Process
Rollout Process
Process Complete
Process Complete
Process Complete
Process Complete
Process Complete
Recruit Team
Train Team
Deploy Team
Work Breakdown Structure - Tips
• Use Sticky notes/blackboard/white board
• Team development
• Use automated e.g. MS Project, WBSPro
• Detail down to no less than 5%-10% of the total duration or
a single resource
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Work Breakdown Structure
Startup Project
Creative
Strategy
IT
Fundraising
Marketing
Sales
Finance
HR
Dependency (Design) Structure Matrix
1
2
3
4
5
6
X
X
7
8
1
2
3
4
X
5
X
X
6
X
X
7
8
X
X
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Project Planning: Dependencies
Activity #
Description
Predecessors
1
Creative
-
2
Strategy
-
3
IT
-
4
Fundraising
1
5
Marketing
1,2
6
Sales
1,2
7
Finance
5,6
8
HR
4,6
Network Diagram
3. IT
5. Marketing
7. Finance
2. Strategy
6. Sales
8. HR
1. Creative
4. Fundraising
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Network Diagram
End
3. IT
5. Marketing
Start
7. Finance
2. Strategy
8. HR
6. Sales
1. Creative
4. Fundraising
Types of Dependencies
Finish
Start
Start
Finish
Finish
Finish
Start
Start
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Project Planning: Durations
Activity #
Description
Predecessors
Duration
(Weeks)
1
Creative
-
5
2
Strategy
-
2
3
IT
-
4
4
Fundraising
1
4
5
Marketing
1,2
2
Sales
1,2
5
7
Finance
5,6
2
8
HR
4,6
1
6
Gantt chart: Dependencies and Milestones
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Estimating Activity Durations can be Tricky!
• Parkinson’s Law
• Student’s Syndrome
• Overconfidence
• Biases
• Anchoring
• Confirmation
How Long Will the Project Take?
IT
4 wks
End
Finance
2 wks
Marketing
2 wks
Start
Early
Start
Early
Finish
Task Name
(duration)
Late
Start
Late
Finish
Strategy
2 wks
Sales
5 wks
HR
1 wks
Creative
5 wks
Fundraising
4 wks
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Critical Path Analysis
0
4
IT
4 wks
8
0
0
Start
0
Early
Start
Early
Finish
Task Name
(duration)
Late
Start
Late
Finish
0
0
2
Strategy
2 wks
3
5
0
5
Creative
5 wks
0
5
12
12
12
End
5
7
10
12
12
Finance
2 wks
Marketing
2 wks
8
12
10
10
5
10
10
11
10
5
11
HR
1 wks
Sales
5 wks
5
12
12
9
Fundraising
4 wks
7
11
Critical Path
• The longest path in the project/network.
• The project duration, defined by the length of the critical
path, is also known as makespan.
• A delay in any activity along the critical path will cause a
delay in the project.
• The method was developed by Engineers at DuPont
Corporation in the 1950s.
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Fundamentals of Project Planning and Management Module 2 Slide Handout
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to support your learning while taking this course. Please do not share or distribute it.
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Fundamentals of Project Planning and Management Module 2 Slide Handout
ASAP or ALAP?
Cost
Time
As Soon as
Possible


As Late as
Possible


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Fundamentals of Project Planning and Management Module 2 Slide Handout
Project Schedule – too long!
Project Crashing
• Project duration can be reduced only by shortening
critical activities.
• It may be worth spending money to reduce the
length of a project.
 Select the least expensive to crash
• New critical paths may emerge.
reduce all critical paths!
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Fundamentals of Project Planning and Management Module 2 Slide Handout
As a Result of Project Crashing
• Critical path
• Shorter
• May change
• More activities may become critical
• Higher risk?
Reducing Scope
• Eliminate activities
• Unnecessary
• Reduce functionality
• Cut corners
• Outsource
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Common Planning Mistakes
Issue
Consequences
Impact
No WBS
Missing tasks
Incorrect scope
No responsibility assigned
Incorrect project duration, critical path,
cost estimates, and resource loads
Task durations specified in
terms of work
Underestimate
task durations
Underestimated project duration
Incorrect critical path
Excessive task durations
Dominate plan
Incorrect project duration and critical
path
No Network diagram
Missing
dependencies
Incorrect project duration and critical
path
De Reyck 2009
Common Planning Mistakes
Issue
Consequences
Impact
Tasks without predecessors or
successors
Missing
dependencies
No project critical path
Fixed start dates to mimic
dependencies
Missing
dependencies
Plan prone to errors
No project critical path
No dependency defined between
activities in the correct sequence
Dependencies between summary
tasks
Plan update cumbersome
and prone to errors
Unnecessary
dependencies
Time wasted, unclear
network diagram
De Reyck 2009
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Plan Checklist
• WBS
Available? Complete?
Communicated? Agreed-upon?
• Network Diagram
One start and one finish?
All activities with predecessors
or successors?
• Milestones
One start milestone and one
project completion
milestone?
Intermediate milestones?
Each one has a critical path?
• Gantt-chart
No missing dependencies
between activities in correct
sequence?
No summary task links?
Tasks with excessive
durations?
Check generalized
dependencies (overlaps,
time lags)
Check critical path: from
project start to finish?
Planning Wrap Up
• Project planning is crucial for project success.
• A project plan is a guide, not a schedule of what will
exactly happen.
• Follow the project planning cycle.
• Make sure the goal of the project is clear to you.
• Ensure project scope is complete (most crucial part
of planning).
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Fundamentals of Project Planning and Management Module 2 Slide Handout
Planning Wrap Up – Cont.
• Estimate the activity durations
• Decide who owns each activity
• Know which are the critical activities (“critical” 
“important”)
• Prevent conflicts between activities
• Projects can be accelerated by crashing and/or fasttracking.
This slide handout was created by the University of Virginia Darden School of Business and is provided
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