Planning, Controlling and Allocation of Work

Training Program in

Planning, Controlling and Allocation

of Work

Prepared by

Mamoun Khreisat

/ / / / 2010201020102010OCT

What is Planning

The Evolution of PlanningFinancial Planning

Until 1950's

Dominant Theme

Main Focus & Issues

Principal Concepts & Techniques

Organizational Implications

Budgetary planning & control.

-Financial control,

especially through

operating

budgets.

-- Past trends

- Financial budgeting.

-Investment planning.

- Project appraisal.

- Assuming that the future is a replication of the past

Systems of

operational and

capital budgeting

become key

mechanisms of

coordination and

control.

“Thinking inside the box”

The Evolution of Planning

Long-range Planning: 1960's to Early 1970's

Dominant Theme

Main Focus & Issues

Principal Concepts & Techniques

Organizational Implications

Corporate

planning.- Planning growth,

especially

diversification &

Portfolio Planning.

- Current trends

(past trends are often

inadequate and even

dangerous.

- Medium- and long-

term forecasting. - Corporate planning

techniques. - Synergy.

- Forecast-based planning; the trends of today optimize for

tomorrow

Creation of corporate

planning departments & long-

term planning processes.

Mergers & acquisitions.

Planning viewed as the best way to ensure productivity and profits.

The assumption was that everything with potential value to decision making could be measured, and that after subjecting those measurements to various quantitative models, results would lead to the best strategies.

The Evolution of Strategic Planning (cont.)

Long-range Planning

(Renfro, 1980)

(1) Where is the organization now?

(2) Where is it going?

(3) Where does it want to go?

(4) What does it have to do to change to get to where it wants to go?

The Evolution of Planning

Strategic Planning/ : Late 1970’s to early 1990's

Dominant Theme

Main Focus & Issues

Principal Concepts & Techniques Organizational Implications

Strategic Positioning.

Analysis of industry & competition

Strategic competitive advantage

Selecting industries and markets. Positioning for market leadership.Focusing strategy around Sources of competitive advantage. Dynamic aspects of strategy.

-Industry Analysis. -Competitor analysis. - Segmentation. - Experience curves. - Strategic Business Units. - Portfolio Planning. - Resources & capabilities. - Shareholder value. - Knowledge management. - Information Technology. - Analysis of speed, responsiveness & first-mover advantage. “Environmental Scanning”

- Multidivisional & multinational structures. -Market selectivity. -Divestment of unattractive business units.-Restructuring. -Continuous improvement & process reengineering. -Refocusing.-Outsourcing. -E-business.

The Evolution Planning

Strategic Planning Late 1970’s to early 1980

(1) Scanning external & internal environment for emerging issues that pose threats or opportunities to the organization

(2) Analyzing issues or trends according to their importance to current or planned operations

(3) Understand the expected future for the important issues & trends

(4) Evaluate and control-Identifies areas for additional & continuedscanning

The Evolution of Strategic Planning

Strategic Management/ Planning Ditrection:

2000+Dominant

Theme Main Focus & Issues Principal Concepts &

Techniques Organizational

Implications

Strategic & organizational innovation.

Reconciling size with flexibility & responsiveness.A complete understanding of the organisation and its’environment “in-depth environment analysis”Border understanding of stakeholderExploit the new and different opportunities of tomorrow

Cooperative strategies. Competing for standards. Complexity & self-organization Corporate social responsibility. Renewed commitment to ethics. Less quantitative & more qualitativeCreating own opportunities

Alliances & networks.

New models of

leadership.

Informal Less

reliance on direction,

more on emergence.

Changing values &

attitudes

responding to

changing social

structure and values

Get out of the Box

The Evolution of Planning (cont.)

Strategic Management: 2000+

An "inside-out" dynamic perspective

(1)-Analyzing the business and its environment (external & internal including Resources & strategic capability)- Analyzing Stakeholders

(2) Creation of organizational Vision, mission & goals

Strategic Analysis

Strategy Formulation

Strategic Direction

Strategy Implementation

(3) Develop strategies to take advantage of strengths& opportunities, and overcome or neutralize weaknesses & threats while meeting stakeholdersexpectations

(4) Planning and allocating resources.-organizational Structure & design.-control system .-Managing Strategic Change

Projects

What is Strategic Management

"Strategy is the direction and scope of an organization over the long-term, which

achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".

Johnson and Scholes (Exploring Corporate Strategy 2006)

What is Strategic Management

Strategic Management is a multi-stage continuous process matching the

organisation to the environment. Since the environment is always changing, it must be described as a journey rather than a destination. i.e. it is flexible in line with the degree of environmental dynamism

Nik Poter, Birmingham Business School (2007)

Strategic Management levels The emergence of “business Analyst” and “Project Manager Roles”

Level Main Concern Seniority level Outcome

Corporate

Strategy

overall purpose and

scope of the business

to meet stakeholder

expectations

Board of directors

and CEO/ GM

Direction and goals, often

expressed in a "mission

statement

Business Unit

Strategy

Competing

growth

CEO/GM

Line Managers

Competitive advantages

Strategic choices

pertaining to product,

customer satisfaction,

exploiting/ creating new

opportunities.

Operational

Strategy

How to organize to fulfill

the corporate and

business-unit level

strategic direction

Line Managers

Business Analysts

Project Managers

Allocating resources

including people, design

processes, etc

Strategic Management ProcessStrategic Analysis

Environment Analysis

Environment

Factors

Internal Environment

Tangible Resources;

financial, Human,

Physical ..etc

Intangible Resources;

Culture

Competences,

Organisation Knowledge

& learning

Reputation, Brand,

Patent,

Relationships

The Macro or General Environment

Micro Environment

External Environment

Social Cultural

Environment

Ecological

Economic

FactorsPolitical

Legal

Technology

Public

consumers

competitors

suppliersDistributors

Interest Groups

Macro Environment Analysis

The Macro environment is about the

uuncontrollable factors that influence a firm’s decision making, and affect its performance and strategies.

Macro environment Analysis Technique

PESTEL Analysis

Purpose: To scan the General Environment for forces and trends that may result in opportunities or threats for the project or organization. To help the project/organisationunderstand its context.

PESTEL stands for:

P = Political

E = Economic

S = Socio-cultural

T = Technological

E = Ecological/Environmental

L = Legal

The best time to use a PESTEL Analysis is probably after you have had input on “the big picture”

PETSTL Analysis

• Political Factors:Local, national and international political developments –how will they affect the organisation?

Examples:

- Government Stability

- Taxation policy

- Foreign trade regulation

- Social welfare policies

PETSTL Analysis

• Economic Factors:what are the main economic issues – both nationally and internationally – that might affect the organisation?

Examples:

- Business Cycles

- GNP trends

- Interest Rates

- Money Supply

- Inflation

- Unemployment

- Disposable Income

PETSTL Anlaysis

• Socio-cultural:what are the developing social and cultural trends that mayimpact on how the organisation operates and what will they mean for future planning?

Examples:

- Population demographics

- Income distribution

- Social Mobility

- Lifestyle changes

- Attitudes to work and leisure

- Level of education

PETSTL Analysis

• Technological Factors:Changing technology can impact on competitive advantage very quickly!

Examples:

- Government spending on research

- New discoveries/ developments

- Speed of technology transfer

- Rates of obsolescence

PETSTL Analysis

• Ecological (environmental) Factors:

Ecological issues, such as :

- Environmental protection laws

- Waste disposal

- Energy Consumption

PETSTL Analysis

• Legal Factors:

Laws and regulation that may constrain or protect the business.

Examples:

-Labour laws

-Health and safety

-Policies related to imports and exports

The SWOT Analysis

Purpose:

To identify the internal strengths and weaknesses of an

organization or project, and the external opportunities and

threats the organization or project face.

The best time to use a SWOT Analysis is after you review

progress and after you have done some sort of

environmental scan (PESTEL).

The SWOT Analysis

The process can be done for the organization, departments,

projects and units. It can make a useful contribution to an

organizational diagnosis.

SWOT stands for:

S = Strengths

W = Weaknesses

O = Opportunities

T = Threats

Strategic Analysis Micro Environment Analysis

The micro environment is about the factors in a

firm’s immediate area of operations that affect its performance and decision making freedom. These factors include competitors, customers, distribution channels, suppliers, and interest groups, i.e. it covers the immediate market and related industries(business dictionary).

Strategic Analysis Micro Environment Analysis

• Customer analysis: Segments, motivations, unmet needs

• Competitive analysis: Identify competitors, put in strategic

groups. Evaluate their performance, image, objectives,

strategies, culture, cost structure, strengths, weakness.

• Market analysis: Overall size, projected growth, profitability,

entry barriers, cost structure, distribution system, trends, key

success factors

Strategic AnalysisInternal environment analysis

Focuses on analyzing the organization

strengths and weaknesses. i.e. tackling the

internal factors that give an organization advantages and disadvantages in meeting its objectives.

Senior Business Analysts (BA) are called on to help in this analysis

Strategic AnalysisInternal environment analysis

Internal factors include:

• Tangible Assets and Resources: Financial assets, distribution

channels, and other physical attests

• Operational capabilities: Profitability, sales, product quality brand

associations, cost-effectiveness, product diversification,

relationships, HR, Brand, reputation, customer loyalty…etc.

• Competencies and Capabilities: ability to identify internal

strategic strengths, weaknesses, problems, constraints and

uncertainties to formulate the overall strategy and strategic direction.

.

Internal Analysis and Project

Management

• Pre-project or early project activities to

cultivate project justification (purpose)

• Provide a context for project planning, particularly requirements management.

Internal Analysis also known as

“Enterprise Analysis” in Business

analysis field

Business Analyst conduct Enterprise Analysis

for:

• Identifying new business opportunities.

• Use strategic plans & business architecture to find

– Existing problems and develop solutions

– Gaps between current (as-is) and future (to-be) state

– New opportunities/products

• Conducting feasibility studies to determine optimum business solution:

– Determining whether proposed problem or opportunity is valid and solvable

– Identifying potential business solutions

• Feasibility encompasses several dimensions:

– Economic – financial

– Operational and/or Organizational

– Technical – fit into IT infrastructure which supports the business

• Proposed feasibility study results

– Create business case/ project justification or purpose

– Recommended solution option

Strategic Analysis

Stakeholders Analysis

A stakeholder is any natural person or entity that is actively

involved in a project, or whose interests may be positively or negatively affected by execution or completion of the project"

Why we conduct Stakeholders

Analysis • Identify key stakeholders.

• Anticipate their influence.

• Develop strategies to get their support/ cooperation and to reduce/ mitigate their negative impact on the organization

Typical Stakeholders for an Organization

– Owners (Shareholders)

– Customers

– Creditors

– Top Management/ senior Management

– Employees

– Government (and its agencies).

– Business Partners (Suppliers, affiliate organizations…etc)

– Labor Union.

– General Public

Stakeholder “essentials”

• Identify

• Analyze

• Engage

• Manage

More about Stakeholder Analysis and Management will be discussed under Project Management

Strategic direction

The creation and establishment of an organization's overallvision and mission and the means to achieve them.

Planning direction requires focusing on the business, generate a vision of the future, define a mission and articulate strategic intent all in line with organization’s environment and stakeholders. Goals and objectives must be set and then options evaluated and selected.

Vision

Where does the organization want to be in the future? simply the imagined, credible

and feasible future of the industry.

Vision Examples

BP “to be recognized as a great company – competitively

successful and a force for progress. We have a fundamental belief that we can make a difference in the world.”

Exxon Mobil “to be the world's premier petroleum and petrochemical company.

GE “We bring good things to life”

Fun4BIZ “to help people and organizations become more creative, innovative and joyful”

Mission

Why does the organization exist?

A statement of the needs fulfilled and activities undertaken.

Mission Examples

BP “We help the world meet its growing need for heat, light and mobility. We

strive to do that by producing energy that is affordable, secure and doesn’t damage the environment”

Exxon Mobil “to be the world's premier petroleum and petrochemical company. To

that end, we must continuously achieve superior financial and operating results while adhering to the highest standards of business conduct. These

unwavering expectations provide the foundation for our commitments to those with whom we interact.”

Shell “reinforce our position as a leader in the oil and gas industry in order to provide a competitive shareholder return while helping to meet global energy

demand in a responsible way.”

Microsoft “to enable people and business throughout the world realized their full potential”

Strategy Direction

Strategic Intent

The formal expression of determination to go from the present to the desired future;

representing the link between mission and vision.

Strategy Direction

Goals and Objectives:

What are the overall, high-level desired results as well as specific, measurable outcomes required to achieve the mission and vision?

Strategy Formulation

Develop a comprehensive master plan stating how the corporation will achieve its mission and objectives. It is about determining appropriate courses of action

for achieving organizational objectives.

Strategic Implementation

What is the overall (master) plan of how and when to achieve the goals and objectives? This includes plans, tactics, and action plans (Who will do what and when?)

In some modern organization projects Management play an essential role

at this stage

Projects and Strategic Management

Projects are means of strategy implementation to achieve organization goals and objectives, in the context of

strategy formulation.

Projects are typically authorized to fulfil strategic considerations such as:

1. Meet market demand (More fuel-efficient cars)

2. Capture strategic opportunity (Expand in new market/ develop new product)

3. Enhance the operations (adapt new processes/ solve problems)

4. Satisfy customers request.

5. Achieve technological advancement (Smaller Laptop)

6. Legal/Ecological requirements (Safety procedures/waste disposal)

Projects and Strategic Planning

A project is a temporary endeavor undertaken to create a unique

product, service, or result.

What is a Project?

Temporary

• Has a beginning and an end.

• End when objectives are achieved or when project is terminated.

• Temporary does not apply to project outcome.

Project characteristics:

Unique

• One of its kind.

• Unique outcome.

• Continuously improving “Progressive Elaboration”.

• Involves a degree of uncertainty.

• Utilizes various resources and has a specific time frame.

• Has a customer/end user.

Additional attributes of Project Management:

Applying knowledge, skills, tools, and

techniques to project activities to meet project requirements. Project management involves considerable planning and coordination of interrelated activities.

Project Management:

The set of tasks and techniques

• used to work as a liaison among stakeholders,

• in order to understand the structure, policies, and operations of an organization,

• and recommend solutions that enable the organization to achieve its goals.

Business Analysis:

1. Analyze & solve problems

2. Understand the business

3. Communicate effectively (write & speak)

4. Manage client relationships

5. Facilitate discussions

6. Negotiate & build consensus

7. Model data & processes

8. Plan & manage activities

9. Facilitate & develop business strategy

10. Understand & manage organizational change

Business Analysis Skills

Analysing problem techniqueFishbone Diagram

Man/ people

Methods/

procedures

Materials/ Policies

Machine/ Equipments

Effect

Causes

also known as “cause and effect” or “Ishikawa” diagram

1.Enterprise Analysis2.Requirements Planning & Management3.Requirements Elicitation4.Requirements Communication

5.Requirements Analysis andDocumentation

6.Solution Assessment and Validation

Business Analysis function involves:

Business Analysis function

Source: Business AnalysisBody of Knowledge (BAPOK, 1.6 Version)

Enterprise Analysis and Making a project justification (a Business Case)

Project must fit into the organization overall strategic objectives. Understanding such objectives is essential in building a business case that is in alignment the strategic objectives of the organization.

The role of Business Analysis in project Management

Requirements Planning

Describe a phased approach that forecasts and schedules how the requirements will unfold. The output is a schedule for various time-based requirements gathering and documenting tasks.


Requirements Management

Managing requirements as they evolve. In some organizations there is a formal Configuration Management function. It is important to understand the degree of complexity, the expected level of change or evolution over the course of the project, and the risks involved related to requirements change developments.


Eliciting Requirements

Drawing requirements out of various stakeholders. Understanding stakeholders needs and expectations and build rapport with key stakeholders and explore the uncover core needs.


Requirements Analysis and Models

Developing architectures, drawings, mathematical models, and prototypes that consolidate requirements input and reflect back to stakeholders the proposed solution. This enables further conversations around the continuously unfolding requirements.Requirement documentation assures that everyone is "on the same page".


Communicating and Implementing Requirements

Ensure that the stakeholders are in clear and in agreement the requirements (they buy-in), also must ensure that those who will implement the requirements are clear on what they need to do. It is a challenge due to the detailed and often technical nature of the work. Therefore BA need to bridge that gap and play as an "agent" between stakeholders and implementers.


Communicating and Implementing Requirements

Ensure that the stakeholders are in clear and in agreement the requirements (they buy-in), also must ensure that those who will implement the requirements are clear on what they need to do. It is a challenge due to the detailed and often technical nature of the work. Therefore BA need to bridge that gap and play as an "agent" between stakeholders and implementers.

The role of Business Analyst

The two functions have common characteristics, but are differentThe two functions have common characteristics, but are differentThe two functions have common characteristics, but are differentThe two functions have common characteristics, but are different. The . The . The . The

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Project Management & Business Analysis function:

To enhance the chances of project success you need a

qualified Project Manager (PM) and a qualified

Business Analyst (BA). Both can work together from

the beginning of the project, set the stage for success

by accurately planning and clearly defining the

expected outcomes. Both roles are important since

each is responsible for a different set of tasks and

requires different skills which complement each

other. However, the two roles are closely tied, thus in

some organization are done by one person (most

probably the PM).

Conclusion:

• A product

• A capability to perform a service.

• A result (research to develop

knowledge or new ways to do things

better).

A Project can create:

• Organize your approach

• Generate a reliable schedule

• Track progress and control your project

• Identify where to focus your efforts

• Identify problems early – before they are crises

• Be prepared to respond to risks

• Saves you TIME….MONEY

Why is Project Management Important?

The Project Management structure

SponsorOwner/ Top

Management

Project Manager

Project Sponsorship�Oversight and direction�Institutional commitmentto project

�Officially authorize the project.

Project Manager�Overall responsibility of project implementation and project results.

�Conflict resolution and manage conflictive interests.

�Manage the expectations of key stakeholders (Sponsor, Project Team, customers, suppliers..etc)

�Analysis requirement (Business analysis)�Lead Project team.�Documenting & Reporting

Project Management

Team

Project failure as a result of ineffective business analysis function

• Failure to align project with organizational objectives.

• Poor scope (unclear project charter)

• Unrealistic expectations.

• Poor communication and unclear authority structure.

• Lack of executive sponsorship.

• Poor team work; inability to move beyond individual and personality conflicts

• Politics

Project Constraints (Competing demands)

Project Manger Manages/balances the competing demands

36%

15%

4%

20%

10%

4%11%

Why Projects Fail

Poor execution and Project Management Practices

Poorly Defined or Missing Project Objectives

Ineffective Project Planning

Poor Personnel HR

OthersTechnical

Problem

s 4%Suppliers

Source: Standish Group International, Survey from 2500 l

project management experts

Project Processes

- A project normally requires a number of processes.

- A process is a series of actions directed toward a particular result

- Project management can be viewed as a number of interlinked processes, in each phase a certain process group is used.

Project Management Process Groups

1- Initiating Processes

2- Planning Processes

3- Executing Processes

4- Closure Processes

5- Control and Monitoring

Process

Project life cycle

Graphic from:http://www.method123.com/images/project-lifecycle-v2.jpg

ClosingInitiating

Planning

Executing

Monitoring & Controlling

Five Process Groups of Project Management

Five Process Groups of Project Management

Source: Interaction Versa

Initiation Process groups

• Develop project Charter

- Formal authorization to do the project.

- Key stakeholders should be involved.

- Sponsor provides statement of work, funding, milestones, and timing

- Documenting initial requirements that satisfy the

stakeholder’s needs and expectations

Prepared by top management and key stakeholders, however, it is recommended to assign Project Manager and involve him developing the Charter as early as feasible in this process.

Project Charter

• Why do it: Project purpose or justification

• High-level project description.

• Measurable project objectives and success criteria.

• High-level requirements.

• High-level risks.

• Summary of milestones schedule.

• Summary Budget.

A document contains:

Develop Project Charter

The organization all over strategic consideration (based on the outcome

of Strategic Analysis

and strategic direction)

Project Charter

Inputs Outputs

Project Manager Role in initiation process

(After the Project Charter is developed)

Identify Stakeholders

Identify those who may influence the project

positively and negatively, and document their

information; interest, involvement, impact on

project success

Identify Stakeholders

• Project Charter

• External environmental factors• Enterprise

environmental factors

- Stakeholder

Register- Stakeholder management

strategy

Inputs

Outputs

-Stakeholder

Analysis

-Expert Judgment

Tools& Techniques

Stakeholders analysis techniques

Sample Stakeholder Analysis Matrix

Stakeholder Stakeholder Interest in the project

Assessment of impact

Potential Strategies for gaining support or reducing obstacles

Planning Process groups

Project management is about planning all the

work and then working the plan.

If you fail to plan, You plan TO FAIL

“The nicest thing about not planning is that failure comes as a complete surprise and is not preceded

by a period of worry and depression”.

John Preston, Boston College

Project Planning is a “Rolling Wave Planning”

Progressive Elaboration; progressive detailing of the project management plan.

Planning Process groupsDevelop Project Management Plan

Documenting the actions necessary to define, prepare, integrate, and coordinate all project’s subsidiary plans.

- It’s a roadmap for the whole project

- A plan of all plans

- A primary source of information for how the project will be planned, executed, monitored & controlled, and closed.

“Project plan is a map and a guide; draw your map carefully otherwise you may get lost”.

Developing Project Management Plan involves defining, prepare, integrating, and

coordinating the below subsidiary plans:

1. Scope Management plan

2. Time management plan

3. Cost plan

4. Human resource plan

5. Quality management plan

6. Communication plan

7. Risk management plan

8. Procurement plan

Developing Project Management Plan1.Scope Management plan

Conduct the processes that ensure the project includes all the work required to complete it while excluding all work which is not necessary to complete it. Project Scope Management plan tackling the following process:

1. Collect requirements

2. Define Scope

3. Create WBS

Scope Management planRequirements collection

• Project Charter

• Stakeholder Register

- Requirements

Documentation

-Requirements management plan

-Requirement traceability matrix

Inputs

Outputs-Interviews

-Focus Groups

-Group creativity

(brainstorming,

delphi..etc)

-Questionnaires &

Surveys

-Facilitated Workshops

-Prototypes

Tools& Techniques

The process of defining and documenting stakeholders’needs to meet the project objectives

Scope Management plan

Define Scope

• Project

Charter• Requirements Documentation

- Project scope

statement

Inputs

Outputs-Expert judgment

-Product/ result

analysis

- Alternatives

identification

- Facilitated workshop

Tools& Techniques

Develop a detailed description of the project and its result

Define ScopeProject scope statement

Provides:• A detailed description of deliverables and work required to create them• Scope exclusions• A guide for execution

Enables:• More detailed planning• Change control

• Proper control of project scope

Scope Management planCreate Work Breakdown Structures

“WBS”

• Project scope

statement• Requirements Documentation

-WBS-WBS dictionary-Scope Baseline

Inputs

Outputs

Decomposing

Tools& Techniques

Create WBSDecomposition

Subdividing the major project

deliverables and project work into

smaller, more manageable components

“Work packages”

Each activity in Work Package should:

• Be measurable (status/ completion).

• Have a defined start/end events.

• Have a deliverable.

• Have easily estimated time and cost.

• Have acceptable durations limits.

• Have independents work assignments.

Planning Process groups 2.Time management plan

Includes the processes required to manage timely completion of the project:

• Activity Definition (decomposing the work packages to develop activities list)

• Activity Sequencing

• Activity Duration Estimating

• Schedule Development (indicating milestone list)

• Schedule Control

Time Management PlanDefine Activities

-Activity list- Activity attributes- Milestone list

-Project scope statement

- Project Schedule

network diagrams

Inputs

Outputs

- Precedence diagramming-Dependency determination-Applying leads and lags

Tools& Techniques

Time Management PlanSequence Activities

• Scope

Baseline•Enterprise environment

- Activity list- Activity attributes- Milestone list

Inputs

Outputs

- Decomposing-Rolling wave planning- Expert judgment

Tools& Techniques

Sequence Activities techniques Network Analysis

• Network analysis is a method used in the management of complex projects which have several (even hundreds) of activities related to each other in specified ways.

• Network analysis enables us to calculate:

– The total time required to complete a project

– How much time each activity has to spare without creating a risk to completion time for the overall project. This is known as float or slack.

• Those set of activities which have no spare time constitute the critical path of the project.

Sequence Activities techniques Drawing Networks: Notations used (AOA)

• In the activity on arrow (AOA) diagram each activity is represented by an arrow connecting two circles (nodes)

• The nodes represent transitions between activities –referred to as events

• The duration of an activity is written by the arrow representing it.

• Example shows activity (A), the duration of which is four days, between events 1 and 2.

A

41 2

Sequence Activities techniques Drawing Networks: Notations used (AOA)

• Time is denoted on AOA diagrams in the top and bottom right-hand quadrants of the nodes, thus:

27

353

Earliest Start (ES) Time for

any activity leaving event 3

Latest Finish (LS) Time for any

activity entering event 3

(without putting the project as a whole behind schedule)

Event

Number

Sequence Activities techniques AOA Diagram: Simple Example

Activity Time (days)Immediate

Predecessors

A 2 -

B 7 -

C 4 A

D 3 A

E 2 B,C

F 3 D,E

Precedence table:

Exercise

Draw the AOA diagram for this example

Sequence Activities techniquesNetwork Analysis and Critical Path Method

Group exercise

3.Cost management plan:

Determine the overall cost for all Work Packages.

• Resource Planning• Cost Estimating• Cost Budgeting• Cost Control

4. Human resource plan:

Organizational Planning

Determine and document project roles, responsibilities and required skills. Also state reporting relationships, and creating a staffing management plan.

Staff Acquisition

Team Development

5. Quality management plan:

Determine the quality requirements

and/or standards for the whole project

and document how the project will

demonstrate compliance.

Quality Planning

Quality Assurance

Quality Control

6. Communication plan:

Determine project stakeholders information needs and define a communication approach.

–Communications Planning

– Information Distribution

–Performance Reporting

–Administrative Closure

7. Risk management plan:

The Risk Management plan includes:

–Identify Risk

–Assess Risk

–Developing a Risk Response

–Control Risk Response

7. Risk management plan: • There are two elements that define risk in

projects:

– the probability of an adverse event or occurrence

– the severity and cost of that event or outcome.

• There is generally an opposite relationship between probability and cost/impact throughout the project life cycle:

–generally speaking, most risks are reduced or eliminated towards the start of a project, but their impact increases the later they occur.

–can be graphically represented ….

7. Risk management plan:

RiskH

igh

Lo

w

Project life cycle

Chance of risk event/s occurring

Impact and Cost

to fix risk event

Impact and Cost

Step 1: Identify Risk

Analyse the project to identify sources of risk

Step 1: Identify Risk

Analyse the project to identify sources of risk

Step 2: Assess RiskAssess risks in terms of:�Severity of impact�Likelihood of occurring�Controllability

Step 2: Assess RiskAssess risks in terms of:�Severity of impact�Likelihood of occurring�Controllability

Step 3: Develop Risk Response• Develop strategy to reduce possible damage

• Develop contingency plans

Step 3: Develop Risk Response• Develop strategy to reduce possible damage

• Develop contingency plans

Step 4: Control Risk Response• Implement risk strategy• Monitor/adjust plan for new risks

• Change management

Step 4: Control Risk Response• Implement risk strategy• Monitor/adjust plan for new risks

• Change management

New risks

New risks

New risks

(adapted from Gray and Larson, 2003)

Identify Risk

• Risks exist because of both exogenous and

endogenous factors:

– Exogenous factors include changes in technology,

government regulation/policies, market fluctuations in

prices and supplies, legal and contractual issues, natural

events such as poor weather and disasters, loss due to

theft of vandalism, etc.

– Endogenous factors may include personnel issues,

impacts of other project, conflicts in access to resources,

lack of data, poor performance, and inexperience, etc.

Identify Risk

• Generate a list of possible risks:

– Team based, use of brainstorming, etc.

– Concentrate on identifying causes, not just

effects.

– Can use the work breakdown structure (WBS),

process breakdown structure (PBS) as guides.

– Alternatively can develop “partial risk profiles”

for different types of project.

Example Partial Risk Profile for Product Development Process

• Technical requirements

• Design

• Testing

• Development procedures

• Schedule

• Budget

• Quality

• Management and responsibilities

• Work organization

• Staffing

• Customer understanding

• Contractors

(from Gray and Larson, 2003)

Assess Risk

• Once risks have been identified, these need to be sifted

through and analysed for severity and implications.

• There are many techniques for doing this, including:

– Scenario analysis

– Ratio and range analysis

– Hybrid analysis

– Failure Mode and Effects analysis (FMEA)

– Probability Analysis

Develop Risk Response

• Having identified and analysed a risk the question arises:

How should we respond andreact to a specific event?

• Risk response requires some thought of contingency planning

• Risk responses can be classified as:• Mitigating risk• Transferring risk• Sharing risk …. and • Retaining risk

• Team Exercise: complete the following slides ….

Develop Risk Response Contingencies• What if the worst happens, or an unexpected event

occurs?

• Technical risks – problematic• Both schedule and cost risks need “trade-offs”

– Schedule risks:• the use of slack (float time)• imposed duration times• compressing schedules

– Cost risks:• include such things as time/cost dependency, cash flow

decisions, price protection risks, etc.

• Contingencies need funding– whether from pre-budgeted reserves or from

more general management reserves

Control Risk Response

• Monitor and control risk responses, as well as tracking project progress.

• Not every detail of a project will materialise as expected – change control management is therefore important to effective project management:

– Scope changes – design changes or additions – are major changes that need very close management and control

– Contingency plans (see above) also need close control when a risk event occurs.

– Also improvement changes may be suggested by team members or other shareholders.

8. Procurement plan:

• Procurement Planning

• Study alternative.

• Source Selection

• Contract Administration

• Contract Close-out

Executing Process groups

To complete the work defined in the project management plan, “the plan for all plans”, to satisfy the project specifications.

“Coordinating people and other resources as well as integrating and performing the activities in accordance with the project all over plan”

Monitoring & Controlling ProcessGroups

The processes required to track, review, and regulate the progress and performance. It’s about measuring performance regularly and consistently to identify variances from

project plan. Also, it controls changes and recommends preventive actions.

Includes:

• Monitor and control project work.

• Perform integrated change control.

• Verify and control scope.

• Control Schedule.

• Control resources.

• Perform Quality Control.

• Report performance.

• Monitor and control risks.

Scope Management plan

Verify Scope

• Project management plan•Requirements Documentation

• Requirement traceability matrix•Validated deliverables

- Accepted

deliverables-Change requests-Project document update

Inputs

Outputs

Inspection

Tools& Techniques

Inspection involves measuring and examining, ..etc

Closing Process groups

The processes performed to

finalize all activities across all

project phases to formally

complete the project or phase.

Closing involves

- Obtain acceptance by the customer or sponsor on project outcome.

- Conduct post-project/ phase- end review.

- Document lessons learned.

- Archive all relevant project documents.

- Close any contractual arrangement related to the project/ phase.

- Celebrate success.

References

• Robert M. Grant, Contemporary Strategy Analysis, 5th and 2nd eds., Blackwell Publishers, Inc., Cambridge, Massachusetts,2005 and 1995.

Gerry Johnson, Kevan Scholes, and RaichardWhittington,

Exploring Corporate Strategy (7th Edition), Prebtice Hall, 2005.

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Planning, Controlling and Allocation of Work

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