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PROJECT PLANNING:Planning of Execution, Operations, Installation and Use

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Project Management ­MGMT627
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LESSON 15
PROJECT PLANNING
Broad Contents
Introduction
Project Planning
Plan of Execution
Information Required for Planning Execution of Projects
Early Stage Documentation by Project Manager
15.1
Introduction:
Planning is done to facilitate later accomplishment. Planning techniques covered here are
intended to smooth the path from idea to accomplishment. Project planning is a complicated
process to manage project and planning act as map of this process. Map must have sufficient
detail to determine what must be done next but simple enough that workers are not lost in welter
of minutiae.
Almost all project planning techniques lead to plans that contain same basic elements. They
differ only in ways they approach process of planning. At its best, planning is tortuous. It is
iterative process yielding better plans from not-so-good plans, and iterative process of
improvement seems to take place in fits and starts. Process may be described formally, but it
does not occur formally. Bits and pieces of plans are developed by individuals, by formal group
meetings, or by formalized planning teams and then improved by other individuals, groups, or
teams, and improved again, and again.
15.2
Project Planning:
In order to do successful project management, (whether it is in response to an in-house project
or a customer request), it must utilize effective planning techniques. The quantitative and
qualitative tools for project planning must be identified. Management must make effective
utilization of resources, from a systems point of view.
A systematic plan is required in which the entire company is considered as one large network
that is further subdivided into smaller ones. This would ensure effective utilization over several
different types of projects.
In this regard, the first step in total program scheduling is to understand the project objectives.
These goals may be to:
·  Develop expertise in a given area
·  To become competitive
·  To modify an existing facility for later use
·  To keep key personnel employed.
Both implicitly and explicitly, the objectives are generally not independent and are all
interrelated.
The following four questions must be considered, once the objectives are clearly defined:
i)
Which functional divisions will assume responsibility for accomplishment of these
objectives and the major-element work requirements?
ii)
The required corporate and organizational resources available?
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iii)
What are the major elements of the work required to satisfy the objectives, and how are
these elements interrelated?
iv)
What are the information flow requirements for the project?
Both the direct as well as the indirect-labor-charging organizational units must accomplish
careful planning and analysis, if the project is large and complex. The project organizational
structure must be designed to fit the project; work plans and schedules must be established so
that maximum allocation of resources can be made; resource costing and accounting systems
must be developed; and a management information and reporting system must be established.
Unless all of the necessary information becomes available at project initiation effective total
program planning cannot be accomplished. These information requirements are:
·
The statement of work (SOW)
·
The project specifications
·
The milestone schedule
·
The work breakdown structure (WBS)
As the name indicates, the statement of work (SOW) is a narrative description of the work to be
accomplished. It includes the objectives of the project, a brief description of the work, the
funding constraint if one exists, and the specifications and schedule. The schedule is a "gross"
schedule and includes such things as the:
·
Start date
·
End date
·
Major milestones
·
Written reports (data items)
Report writing is a specialized area. Written reports should always be identified so that if
functional input is required, the functional manager will assign an individual who has writing
skills. It is no secret who would write the report if the line people did not.
15.3
Planning of Execution:
As described earlier, project planning is a structured sequence of events that lead to a desired set
of objectives.
A detailed, written, "Plan of Execution (P of E) " for project is drawn up, once project
viability has been established and decision to proceed has been made. This plan must show:
a)
Who is to do what
b)
When
c)
How
d)
Major decisions requirements
It is essential that the project objectives must be clearly tied to overall mission of the firm.
Senior management defines a firm's:
·
Intent in undertaking project
·
Scope of project
·
Project desired results
In this regard, the Plan of Execution:
·  Becomes a vehicle for communication with all stakeholders
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·
Becomes a prerequisite for detailed scheduling of work
·
Helps documentation for preparation of "cost estimates"
Project management plans are more comprehensive than either management plans or project
plans. The preparation of plans is a simple, straightforward approach designed to promote and
ensure comprehensive project planning. The project management plan is a combination of two
plans that are often prepared separately: the traditional management plan, which describes
operational management systems and approaches, and the project plan, which includes the work
breakdown structure (WBS), logic, schedules, and cost estimates. They reflect awareness that
the people, the system, and the detailed planning are all critical to project success.
15.4
Information Required From Planning of Execution:
Following information is required:
1.
Type of project
2.
Its capacity and location(s)
3.
Scope of work to be performed
4.
Preliminary cost estimation
5.
Site visitation report
6.
Preliminary schedule of major objectives
7.
Pertinent contract requirements
8.
Special design and/or construction requirements
9.
Climate restrictions
10.
Environmental study, feasibility study reports, etc
11.
Proposal document
Following are the basis for Project Manager's planning endeavors for planning of execution.
·
Existing documents:
·  Client's inquiry
·  Proposal (as modified/amended in negotiation period)
·  Contract and preliminary wok plans (during proposal preparation)
·
Before Execution Planning:
Before Execution Planning, project manager is required to provide the complete scope
definition of work.
Planning of Execution provide basis to:
a)
Schedules
b)
Detailed cost estimation
c)
Control budget
d)
Quality and performance assurance program
It leads to develop Work Breakdown Structure and integrates work schedule costs into track-
able and controllable program. During this phase, performance baselines are also estimated
during project planning.
15.5
Early Stage Documentation by Project Manager:
This includes:
1.
Coordination Procedure (CP):
·
Coordination Procedures or Job Instructions. It includes administrative procedures in
projects.
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2.
Early Work Schedule (EWS):
·
This helps in tracking activities requiring immediate action.
·
Cannot wait for release of formal schedules.
·
Early work Schedule (EWS) contains:
a) Running list of activities started early
b) Name of responsible individuals
c) Completion date of an activity.
15.5.1 Emphasis Placed on Early Planning:
As we know that planning does not stop with the initial plan. It is a continuous process
which is fine tuned whenever necessary. Many events can potentially adversely affect
/disrupt plan targets. In this regard, many a times, corrective actions will be required to
restore:
a)
Integrity of schedule
b)
Budget
15.6
Example of Building House to Common "Activities in Each Phase" of Project Planning:
1.
Definition Phase:
Problem defined in request document
House need heating, plumbing, lighting, storage etc.
2.
Analysis Phase:
Produces functional specifications (deliverable)
Location of ventilators, air conditioner, outlet for phone etc.
3.
Design Phase:
System proposed to solve problem
System divided into functional components
Components are interconnected
Expectation: rooms, ventilation, wiring etc.
4.
Programming Phase:
Actual work conducted to bring system into being.
Expected: building of house
5.
System Test Phase:
Brings pieces together and tests them as whole
House: test plumbing, electricity, roof, etc.
6.
Acceptance Phase:
Customer tests complete system for acceptance/ payment
Minor problems are fixed
Major problems require negotiation
Minor problem may include house buyers ask for repairs to cracked plaster, or outlet
Major problem can be two fireplaces vs. one built.
7.
Operations, Installation and Use:
House buyer moves in and lives in house
Problems developed/found upon use are fixed during warranty period
Not included in this are:
a)
Maintenance
b)
Upgrades
c)
Extensions
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Table of Contents:
  1. INTRODUCTION TO PROJECT MANAGEMENT:Broad Contents, Functions of Management
  2. CONCEPTS, DEFINITIONS AND NATURE OF PROJECTS:Why Projects are initiated?, Project Participants
  3. CONCEPTS OF PROJECT MANAGEMENT:THE PROJECT MANAGEMENT SYSTEM, Managerial Skills
  4. PROJECT MANAGEMENT METHODOLOGIES AND ORGANIZATIONAL STRUCTURES:Systems, Programs, and Projects
  5. PROJECT LIFE CYCLES:Conceptual Phase, Implementation Phase, Engineering Project
  6. THE PROJECT MANAGER:Team Building Skills, Conflict Resolution Skills, Organizing
  7. THE PROJECT MANAGER (CONTD.):Project Champions, Project Authority Breakdown
  8. PROJECT CONCEPTION AND PROJECT FEASIBILITY:Feasibility Analysis
  9. PROJECT FEASIBILITY (CONTD.):Scope of Feasibility Analysis, Project Impacts
  10. PROJECT FEASIBILITY (CONTD.):Operations and Production, Sales and Marketing
  11. PROJECT SELECTION:Modeling, The Operating Necessity, The Competitive Necessity
  12. PROJECT SELECTION (CONTD.):Payback Period, Internal Rate of Return (IRR)
  13. PROJECT PROPOSAL:Preparation for Future Proposal, Proposal Effort
  14. PROJECT PROPOSAL (CONTD.):Background on the Opportunity, Costs, Resources Required
  15. PROJECT PLANNING:Planning of Execution, Operations, Installation and Use
  16. PROJECT PLANNING (CONTD.):Outside Clients, Quality Control Planning
  17. PROJECT PLANNING (CONTD.):Elements of a Project Plan, Potential Problems
  18. PROJECT PLANNING (CONTD.):Sorting Out Project, Project Mission, Categories of Planning
  19. PROJECT PLANNING (CONTD.):Identifying Strategic Project Variables, Competitive Resources
  20. PROJECT PLANNING (CONTD.):Responsibilities of Key Players, Line manager will define
  21. PROJECT PLANNING (CONTD.):The Statement of Work (Sow)
  22. WORK BREAKDOWN STRUCTURE:Characteristics of Work Package
  23. WORK BREAKDOWN STRUCTURE:Why Do Plans Fail?
  24. SCHEDULES AND CHARTS:Master Production Scheduling, Program Plan
  25. TOTAL PROJECT PLANNING:Management Control, Project Fast-Tracking
  26. PROJECT SCOPE MANAGEMENT:Why is Scope Important?, Scope Management Plan
  27. PROJECT SCOPE MANAGEMENT:Project Scope Definition, Scope Change Control
  28. NETWORK SCHEDULING TECHNIQUES:Historical Evolution of Networks, Dummy Activities
  29. NETWORK SCHEDULING TECHNIQUES:Slack Time Calculation, Network Re-planning
  30. NETWORK SCHEDULING TECHNIQUES:Total PERT/CPM Planning, PERT/CPM Problem Areas
  31. PRICING AND ESTIMATION:GLOBAL PRICING STRATEGIES, TYPES OF ESTIMATES
  32. PRICING AND ESTIMATION (CONTD.):LABOR DISTRIBUTIONS, OVERHEAD RATES
  33. PRICING AND ESTIMATION (CONTD.):MATERIALS/SUPPORT COSTS, PRICING OUT THE WORK
  34. QUALITY IN PROJECT MANAGEMENT:Value-Based Perspective, Customer-Driven Quality
  35. QUALITY IN PROJECT MANAGEMENT (CONTD.):Total Quality Management
  36. PRINCIPLES OF TOTAL QUALITY:EMPOWERMENT, COST OF QUALITY
  37. CUSTOMER FOCUSED PROJECT MANAGEMENT:Threshold Attributes
  38. QUALITY IMPROVEMENT TOOLS:Data Tables, Identify the problem, Random method
  39. PROJECT EFFECTIVENESS THROUGH ENHANCED PRODUCTIVITY:Messages of Productivity, Productivity Improvement
  40. COST MANAGEMENT AND CONTROL IN PROJECTS:Project benefits, Understanding Control
  41. COST MANAGEMENT AND CONTROL IN PROJECTS:Variance, Depreciation
  42. PROJECT MANAGEMENT THROUGH LEADERSHIP:The Tasks of Leadership, The Job of a Leader
  43. COMMUNICATION IN THE PROJECT MANAGEMENT:Cost of Correspondence, CHANNEL
  44. PROJECT RISK MANAGEMENT:Components of Risk, Categories of Risk, Risk Planning
  45. PROJECT PROCUREMENT, CONTRACT MANAGEMENT, AND ETHICS IN PROJECT MANAGEMENT:Procurement Cycles