Initiating and Planning Projects

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1 Initiating and Planning Projects Ron Meier, Professor 210L Turner Hall Department of Technology Illinois State University Normal, IL Phone (309)

2 Project Initiation and Planning Description: Provide an overview of the activities needed to successfully initiate, plan, schedule, and control the time and cost factors of a project. Objectives: The student will: Explain or define terminology associated with project planning and scheduling including: Hoshin planning and analysis, project life cycle, the phases of project planning and execution, work breakdown structures, and scheduling terms. Develop appropriate plans and documentation needed to initiate a project including project charter, scope, team organization, work authorization system, and change control system. Working from case studies, analyze project requirements and develop a work breakdown structure for the project. Benefits: Learn how to use project management tools to help you create clear project missions and goals, accurately estimate project time and costs, manage project scope, and establish feedback systems for project control. 2

3 Start With the Project Charter Project Title: Project Description: (What is the Project?) Project Manager Assigned and Authority Level: (Who is granted the authority to lead the project and determine resource requirements?) Objectives: (What quantitative criteria will be used to measure the project s success? Focus on the TRIPLE CONSTRAINTS) Business Case: (Why does your company need to do this project? How will your company benefit? This is the business rationale!) Product Description and Deliverables: (What reports and documentation will be required? What is the end result of the project?) Signed and Approved By: XXXXXXX XXXXXX, Job Title Insert Company Name Here Address of Company City, State Zip Code Phone: (XXX) XXX-XXXX Fax: (XXX) XXX-XXXX XXXXXXX XXXXXX, Job Title Insert Company Name Here Address of Company City, State Zip Code Phone: (XXX) XXX-XXXX Fax: (XXX) XXX-XXXX 3

4 What is Project Initiation? The focus here is on Integration Management! As the Project Manager YOU are the integrator The project manager integrates all the pieces of the project Senior management/project sponsor protects the project from changes and loss of resources The project team completes the tasks, activities, and work packages During project initiation it is vital to collect historical data and information. Examples include: Tasks WBS Reports Estimates Project Plans Lessons Learned Benchmarks Risks Resource Needs Communications Best Practices If no historical data or information has been kept in the past START a DATABASE of project related records, data, and information 4

5 Developing a Project Planning Methodology What is project plan development? Project plan development is the process of generating a project plan that is bought-into, approved, realistic and formal. Project plan development includes all of the following: A methodology for creating the plan Various iterations of the plan Meeting with functional managers to get needed resources as needed Assess project risks and how they can impact your plan Meet with stakeholders to define their roles on the project Examine project interrelationships to assess potential problems Have team members approve all activities and final schedule Hold kick-off meeting to review project objectives Present multiple solutions to management for problem objectives Establish a control plan to evaluate project activities 5

6 Developing a Project Planning Methodology Does your organization have standardized procedures, forms, guidelines, and templates on how to plan projects? Does your organization have scope statements, project charters, work breakdown structures, statements of work, budget forms, schedule forms, process analysis forms, change control plan, performance measurement baselines, communications plans, staffing plans, quality plans, risk management plans, etc. If not then use the templates from our courses Think about developing a project management information system! This information system can act as a repository for automated tools, techniques and procedures, archiving reports, meeting minutes, documentation of decisions, etc This information system can also include measurement and evaluation techniques for assessing project success and failures 6

7 What is planning? Planning is the selecting of the organizational objectives and establishing the policies, procedures, and programs necessary for achieving them. Planning is establishing a predetermined course of action within a forecasted environment. Planning is decision-making based upon what is needed in the future. Planning should completely define all of the work that is required. A Project Planning should: Eliminate or reduce uncertainty Improve efficiency Provide a better understanding of the objectives Provide a basis for monitoring and controlling work Poor planning creates the following problems: Incomplete project initiation documents and scope definition Disillusionment Chaos Search for the guilty passing blame onto others Promotion of non-participants Non-definition/ description of the requirements 7

8 Nine Major Components of Planning Objective: A goal, or target, or quota to be achieved by a certain time Program: the strategy to be followed and the major actions to be taken in order to achieve or exceed objectives Schedule: a plan showing when individual or group activities will be started and completed Budget: planned expenditures to achieve or exceed objectives Forecast: a projection of what will happen by a certain time Organization: design of the number and kinds of positions, along with roles, responsibilities, and accountability required to achieve or exceed objectives Policy: a general guide for decision making and individual actions Procedure: a detailed method for carrying out a policy Standard: a level of individual or group performance defined as adequate or acceptable 8

9 A Partial Outline For Planning Questions Prepare environmental analysis Where are we? How and why did we get there? Set Objectives Is this where we want to be? Where would we like to be? In a year Five years? List alternative strategies Where will we go if we continue as we are? Is this where we want to be? How can we get to where we want to be? List threats and opportunities What might prevent us from getting there? What might help us get there? Prepare forecasts Where are we capable of going? What do we need to get us there? Select strategy portfolio What is the best course for us to take? What are the potential benefits? What are the risks? Prepare action programs (activities that support objectives) What do we need to do? When do we need to do it? How will we do it? Who will do it? Monitor and control Are we on course? If not, why? What do we need to do to be on course? Can we do it? 9

10 Types of Benchmarking Required for the Planning Process INTERNAL ASSESSMENT o Management Skills o Resources o Wage and salary levels o Minority groups o Layoffs o Sales forecasts EXTERNAL ASSESSMENT o Legal o Political o Social o Economical o Technological COMPETITIVE ASSESSMENT o Industry characteristics o Company requirements and goals o Competitive history o Present competitive activity o Competitive planning Return on investment ROI Market share Size and variety of product/service offerings o Competitive resources 10

11 Once All Three Types of Benchmarking Are Completed The Planning Process Continues With The Following: Identification of your corporate strengths and weaknesses Clarification of senior managements personal values Identification of opportunities Define your product market Identify competitive strategies and product/service differentiation techniques Establish goals, objectives, and standards Identify resources needed (people and $$$$$) Develop schedule of when goals, objectives and standards will be met 11

12 Roles and responsibilities for developing a plan Project Managers define: Goals and Objectives Major milestones Requirements Ground rules and assumptions Time, cost, and performance constraints Operating procedures Administrative policy Reporting requirements Line Managers define: Task descriptions to implement objectives, requirements, and milestones Detailed schedules and human resource allocations to support the budget and schedule Identification of areas of risk, uncertainty, and conflict Senior Management defines: Act as negotiator for disagreements Provide clarification on critical issues Provide a communications link with customer s senior management 12

13 Once All Objectives Have Been Identified Four Questions Need To Be Addressed: (1) What are the major elements of the work required to satisfy the objectives, and how are these elements interrelated? (2) Which functional business units or divisions will assume responsibility for accomplishments of these objectives and the major-element work requirements? (3) Are the required corporate and organizational resources available? (4) What are the information flow requirements for the project? 13

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