Basics of Project Management
Planning
21 October 2010
Presented by: Denver Rangiah
012 315 5254
082 627 7256
denver.rangiah@treasury.gov.za
The Characteristics of Projects
- The definition of a project
• “A project is any planned, temporary endeavour
undertaken to create a unique product, service, or other
complete and definite output (not outcome) within a
limited time scale and budget. Projects normally require
the mobilisation of resources from a number of different
disciplines.” – Project Management page 3.
• “A project is a temporary endeavour undertaken to
create a unique product, service, or result.” – PMBOK
2
The Time, Cost, and Quality balance
(The Triple Constraint)
Performance
Scope
Time
Quality
Triple
Const
raint
Cost
A sign in a remote vehicle spare
parts store read:
“You can have it FAST,
You can have it CHEAP,
You can have the BEST.
Pick any two.”
Question: What is more important in a project,
Quality, Time or Cost?
Answer: They are interdependent – Any compromise
needs to accommodate the expectations of the
stakeholders.
*Project Management Principles and Practices, page 8.
3
Reasons for Making Changes as Early as
Possible
Cost
of a
Change
increases
over time
Ability to
influence
Outcome
decreases
over time
Project Life
Figure 4.2, page 57
Project Life
Figure 4.3, page 57
4
WBS – Example
Project
Startnew
newproject
affiliate
Start
1. Community
awareness
2. Committee
training
2.1 Family
selection training
3. Business plan /
affiliation
2.2 House
construction /
standards training
2.2.1
Construction
standards
workshop
2.2.2 Visit
existing
affiliate /
houses
Phase / Sub-project
Task
Activity
5
RAM - Example
•
Job Title
Construction
Supervisor
Mason
Volunteer
PM
•
Name
Solomon
Fred
Ned
Carol
•
Activity
•
WBS No
•
Mix Mortar
•
2.2.1
•
A
•
S
•
P
•
I
•
Lay Bricks
•
2.2.2
•
C
•
P
•
S
•
I
•
Plaster Walls
•
3.1.1
•
A
•
P
•
S
•
I
•
Paint Walls
•
3.1.2
•
C
•
S
•
P
•
I
•

RESPONSIBILITY KEY:
P = Primary Responsibility
S = Secondary Responsibility A = Approve
I = Inform C = Consult
6
Types of Risks to Project
•
•
•
•
•
•
•
•
•
Unreliable cost estimates
Unreliable time estimates
Loss of team members (staff)
Insufficiently skilled staff
Political instability
Government action / regulations
Changes in scope (scope creep)
Insufficient planning
Natural disasters
7
Poor Project Control - Reasons
• Project managers
– Customer/Mgmt
changes
– Technical issues
– Unrealistic plans
– Staffing problems
– Unable to detect
problems early
• Senior managers
–
–
–
–
–
Insufficient early planning
Unrealistic plans
Underestimate scope
Customer/Mgmt changes
Insufficient contingency
planning
– Under resourcing
Article, “Criteria for controlling projects according to plan,”
Thamhain, H.J. and Wilemon, D.L.
8
Poor Project Control - Reasons
• Project managers
– Customer/Mgmt
changes
– Technical issues
– Unrealistic plans
– Staffing problems
– Unable to detect
problems early
• Senior managers
–
–
–
–
–
Insufficient early planning
Unrealistic plans
Underestimate scope
Customer/Mgmt changes
Insufficient contingency
planning
– Under resourcing
Article, “Criteria for controlling projects according to plan,”
Thamhain, H.J. and Wilemon, D.L.
9