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Project Management
Lecture 2: Fundamentals
of Planning
Rishi Mohan Sanwal
IIM Kashipur
Feb 2016
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Revision of last class
Feb 2016 2Project Management Excellence
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Scope management
Feb 2016 Project Management Excellence 3
Scope defines the boundaries of the work being
undertaken. A well defined objective leads to a well
defined scope
–
Business Units / Products – Geography
– Departments, Business Functions (Procurement, Sales,
operations, etc.) and sub-functions
–Time duration
– Functional Scope
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Work Definition - WBS
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WBS Example
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So what can a WBS be used for?
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Project
Management
Stakeholders
Management
Activities and
Schedule
Management
Resource
Management
Financials
Management
Risk and
IssueManagement
Objectives
and Scope
Management
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Exercise: Making a WBS
You have been made the in-charge of the project to
convert the Haldwani-Nainital into a 4 lane road. You
need to draw a WBS for the project.
Work together in teams of 2
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Time: 10+5 mins
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High level project planning – Gannt Charts
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WBS Element Duration Predecessor
H 10 weeks
I 8 weeks H
J 6 weeks H
K 4 weeks J
L 2 weeks JM 4 weeks J
N 4 weeks I
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High level project planning – Gannt Charts
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Timelines
Jul Aug Sep Oct Nov Dec
M i l e s t o n e s
Customer Requirements
Signoff
Final Design Sign-off
Foundation
Construction complete
Centre Launch
High level project planning – Milestone
Charts
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Planned Milestone
Actual completion
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Stage Gates – Templates for High level
Planning
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Illustrative Data Migration Gate Methodology
Illustrative Stage Gates
used by a company
erecting Bio-fuels plants
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So why do projects get delayed?
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....and what can we do about it?
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Analysis of project delays at an illustrative
organization
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5.1
1.4
2.5 3.6
17.6
11.4
11.2
6.5
5.1
3.0
1.90.8
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
18.0
20.0
MS1 MS2 MS3 MS4
A v e r a g e d e l a y ( M o n t h s
Average delay Maximum delay Median
90% of the projects are delayed
(from 51* sample projects)
during execution
The data range selected is for 8departments
~75% of projects (39) started
according to proposal startup
date
Average/Median time delay on
milestones keeps on increasing(from MS1 to MS4)
Key Observations
* Selected by HODs
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Analysis of project delays at an illustrative
organization
Reasons for delay analyzed as per PM inputs
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42%
18%
13%
14%
13%Client Approvals
Resource Unavailability
Other (data, clearance etc.)
Change in scope of work
Unrealistic deadlines
Client ApprovalsDeliverables not up to clients
expectations
Change of clients project manager
Change in original clients expectations
Another analysisshowed that 47% of
the projects were
under-staffed !
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So why do projects get delayed?
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5 golden rules for project planning
Rule 1: Right forecasts need right environment
Rule 2: To work on future, learn from past
Rule 3: Build buffers; not padding.
Rule 4: Plan your project on all 6 aspects
Rule 5: A plan also has to be the PM’s baby!
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The Next class
Detailed Scheduling with Networks & Critical Paths
We will have a quiz
Please come prepared with MS Projects installed on
your laptops
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Thank You
Rishi Mohan Sanwal
IIM Kashipur
Feb 2016