Project Planning

and Control
PROCESS GUIDE

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 Introduction v 1.2

What is a project plan?

What is a project plan?
 A project plan is a model of the process that the project team intends to follow to realise the project objectives. It brings
A project
 together plan is aof
a number model of theaspects
important processofthat
thisthe project
process team intends
including to follow
its scope, timing,to cost,
realise the
and project objectives.
associated risks. It brings
together a number of important aspects of this process including its scope, timing, cost, and associated risks.
 The project plan can be viewed as a type of “contract” between the project team members and other stakeholders. It defines
The
 the projectby
process plan canthe
which be objectives
viewed as a type
will be of “contract”
achieved, andbetween the project team
the responsibilities members
in carrying and process.
out this other stakeholders. It defines
the process by which the objectives will be achieved, and the responsibilities in carrying out this process.
 Project plans also underpin a number of other key project management functions including estimating and forecasting,
Projectanalysis
 options plans also
andunderpin a numberand
decision-making, of other key project
performance management
monitoring functions including estimating and forecasting,
and control.
options analysis and decision-making, and performance monitoring and control.

Who is responsible for planning? What are the benefits of planning?

Who is responsible for planning? What are the benefits of planning?
 Everyone in the project team should be involved in  It is more likely to lead to success and is more cost-
Everyone in
 developing thethe project
plan. team should
It should be involved in
be a collaborative It is more
 effective likely
than to lead
a “just to approach.
do it” success and is more cost-
developing the plan. It should be a collaborative
effort. effective than a “just do it” approach.
effort.  It develops greater mutual understanding and more
 The project manager should provide leadership in this It develops to
 commitment greater mutual
achieving theunderstanding andthe
objectives within more
project
Thebut
 area project
may manager
delegate should
some ofprovide leadership in this
the administrative commitment to achieving the objectives within the project
team.
area but may delegate some of the administrative
aspects and detailed analysis to a project support role. team.
aspects and detailed analysis to a project support role.  It provides an “early warning system” so that problems
 On larger projects there may be one or more dedicated It provides
 are identifiedan “early
while warning
there is stillsystem” so that
time to do problems
something
On larger projects there may be one or more dedicated
 planners. are identified
about them. while there is still time to do something
planners. about them.

Key elements of a plan

Key elements of a plan – it’s not just a Gantt Key elements of a plan are:
Key elements of a plan – it’s not just a Gantt
chart Key elements of a plan are:
chart  Products – What products must the project deliver? What are
Products
 the – What products
quality requirements must the
associated project
with deliver? What are
the products?
the quality requirements associated with the products?
 Activities – What activities are needed to deliver the products?
 Activities – What activities are needed to deliver the products?
 Resources – What resources are needed to carry out the
Resources – What resources are needed to carry out the
 activities?
Activities activities?
 Schedule – In what sequence should we carry out the
ScheduleHow
 activities? – Inlong
whatwill
sequence shouldtake
the activities we carry out the Are
to complete?
Products Resources
the required How
activities? long will
resources the activities
available? takewill
How long to complete?
the projectAre
the overall?
take required resources available? How long will the project
take overall?
 Budget – What are the time-phased resource requirements
Budget
 and – What
financial areHow
costs? the time-phased
much will theresource requirements
project cost overall?
Schedule Budget Risks
and financial costs? How much will the project cost overall?
 Risks – Are we taking unnecessary risks? Is the level of risk
Risks – commensurate
 exposure Are we taking unnecessary
with the riskrisks? Is the
appetite? level
Are of any
there risk
exposure commensurate with the
opportunities that could be exploited? risk appetite? Are there any
opportunities that could be exploited?
 Assumptions – What are the underlying assumptions
Assumptions
 associated – What
with the plan?are the underlying assumptions
Assumptions associated with the plan?

The planning process

What is the process for developing a plan?
What is the process for developing a plan?
There are four key stages in developing a robust plan: Defining scope &
There are four key stages in developing a robust plan: Stage 1
responsibilities
1. Identify, structure and define the products needed to achieve the
1. project
Identify, structure Break
objectives. and define
downthe theproducts
work neededneeded to achieve
to deliver the the
project objectives.
products into discreteBreak
work down the work
packages. Defineneeded to deliver the
the responsibilities
ofproducts into discrete
the individuals or teamsworkwhopackages. Define
will deliver the responsibilities
the work packages.
of the individuals or teams who will deliver the work packages. Scheduling &
2. Identify the activities and resources needed to deliver the work Stage 2
2. packages.
Identify the activities
Construct a and resources
schedule needed
that takes to deliver
account thelogical
of the work time/resource analysis
packages. Construct a schedule that takes account of
dependencies between activities, and the availability of resources. the logical
dependencies between activities, and the availability of resources.
3. Estimate the quantity of resources and financial costs associated
3. with
Estimate the quantity
each work package, ofand
resources
use this and financial costs
information associated
in conjunction
with each work package, and use this information in conjunction Cost estimating &
with the schedule to develop time-phased budgets. Stage 3
with the schedule to develop time-phased budgets. budgeting
4. Identify and analyse the risks associated with each work package
4. and
Identify andaanalyse
evaluate range of the risks associated
options for handling with eachSelect
them. work package
the
and cost-effective
most evaluate a range of optionsoffor
combination handling
risk them. actions
management Select the
and
most cost-effective
incorporate them intocombination
the plan. of risk management actions and
incorporate them into the plan. Stage 4 Risk analysis & response
planning
 Stage 1 – Defining scope and responsibilities v 1.2

Objectives Fundamental principles

Objectives Fundamental principles
 To ensure that all the work and products needed to  Break down the project work into cohesive work
To ensure
 achieve the that all the
project work and
objectives areproducts
included needed to
in the plan. Break down
 packages, thethe
using project
WBS work
as aninto cohesiveframework.
integrating work
achieve the project objectives are included in the plan. packages, using the WBS as an integrating framework.
 To develop a hierarchical framework for integrating the  Define the required results (i.e., the products) before
To planning
 key develop aandhierarchical framework
control functions for integrating
(scope, the
quality, cost, Define the how
 considering required resultsthem.
to achieve (i.e., the products) before
key planning
time, and control
risk) at different functions
levels (scope, quality, cost,
of management. considering how to achieve them.
time, risk) at different levels of management.  Encourage collaborative planning and commitment to
 To specify the organisation and responsibilities for Encourage
 achieving collaborative
results planning
by negotiating andand commitment to
agreeing
To specify
 managing the
the organisation
work and responsibilities
and delivering the products. for achieving results
responsibilities byearly
at an negotiating
stage. and agreeing
managing the work and delivering the products. responsibilities at an early stage.

Process description
Process description
1.1 Identify and structure the products needed to achieve the project Step 1.1
Define & analyse
1.1 objectives
Identify and
usingstructure
a ProducttheBreakdown
products needed to achieve
Structure (PBS). the project
Define the products
objectives using a Product Breakdown Structure (PBS). Define
products and specify their purpose, quality requirements and acceptance the
products
criteria, andProduct
using specify Descriptions
their purpose, quality requirements and acceptance
(PD).
criteria, using Product Descriptions (PD).
1.2 Break down the work needed to deliver the products into discrete work
1.2 packages
Break downusingthea work
Work needed
Breakdown to deliver the products
Structure into discrete
(WBS). Define work
the work
packagesand using a Work Breakdown
Develop work
packages specify their products, Structure (WBS). Define
quality requirements, the work
acceptance Step 1.2
breakdown structure
packages
criteria, and specifyrisks,
assumptions, their and
products, quality requirements,
opportunities, acceptance
using Work Package
criteria, assumptions,
Descriptions (WPD). risks, and opportunities, using Work Package
Descriptions (WPD).
1.3 Specify the organisation that will carry out and manage the work
1.3 contained
Specify the organisation
in the WBS, using that
anwill carry out and
Organisational manage the
Breakdown work
Structure
contained in the WBS, using an Organisational Breakdown Structure Specify organisation &
(OBS). Define the responsibilities of individuals or teams in the OBS Step 1.3
(OBS).
(with Define
respect the responsibilities
to elements of the WBS) of individuals or teams inAssignment
using a Responsibility the OBS responsibilities
(with (RAM).
Matrix respect to elements of the WBS) using a Responsibility Assignment
Matrix (RAM).

Work breakdown structure Primary outputs

Work breakdown structure Primary outputs
 Product Breakdown Structure (PBS)
0  Product Breakdown Structure (PBS)
 Product Descriptions (PD)
Project X  Product Descriptions (PD)
 Work Breakdown Structure (WBS)
 Work Breakdown Structure (WBS)
 Work Package Descriptions (WPD)
 Work Package Descriptions (WPD)
 Organisational Breakdown Structure
Organisational Breakdown Structure
 (OBS)
1 2 3 4 5
(OBS)
 Responsibility Assignment Matrix
Project
Documentation
Personal System System Responsibility Assignment Matrix
 (RAM)
management computer design testing
(RAM)
 Assumptions
 Assumptions

3.1 3.2 3.3 3.4 3.5

Chassis Hard Integration

Motherboard CPU
/ PSU drive & testing Supplementary outputs
Supplementary outputs
 Product Flow Diagram (PFD)
Product-  Product Flow Diagram (PFD)
oriented  Work Flow Diagram (WFD)
 Work Flow Diagram (WFD)
3.2.1 3.2.2 3.2.3 3.2.4 breakdown  WBS Dictionary
 WBS Dictionary
Detailed
Procurement Manufacture
Integration  Control Accounts (CA)
design & testing  Control Accounts (CA)
 Dependency Structure Matrix (DSM)
 Dependency Structure Matrix (DSM)
Develop test plan
Process- Work Assemble
oriented package Activities motherboard
breakdown
Test motherboard

Key criteria Hints and tips

Key criteria Hints and tips
 Does the PBS include all of the products needed to  Sometimes the structure of the PBS is embedded in the
Does the
 achieve thePBS include all of the products needed to
objectives? Sometimes
 WBS the structure
by breaking down theofworkthe along
PBS isproduct
embedded linesin the
achieve the objectives? WBS
and by breaking
labelling down
elements of the
the work
WBS along product
with their lines
products
 Does the WBS include all of the work needed to deliver and labelling elements of
Does
 the the WBS
products include
in the PBS?all of the work needed to deliver rather than a description ofthe
theWBS
work.with their
This typeproducts
of
the products in the PBS? rather
WBS than a
is often description
referred to asofa the work. This typeWBS.
“product-oriented” of
 Has the PBS/WBS been broken down in sufficient detail? WBS is often referred to as a “product-oriented” WBS.
 Has the PBS/WBS been broken down in sufficient detail?  Using Post-It Notes in a workshop environment can be
 Has an appropriate PBS/WBS coding scheme been  anUsing Post-It Notes in a workshop
Has an appropriate PBS/WBS coding scheme been
 defined? effective way of developing a PBSenvironment
and WBS. can be
an effective way of developing a PBS and WBS.
defined?  Investigate alternative ways of breaking down the
 Have all the products and work packages been defined? Investigate
 Have all the products and work packages been defined?
 products and alternative
work ratherwaysthanof breaking
just choosingdown
the the
first
 Have the organisation and responsibilities been agreed? products
one and work
that comes rather than just choosing the first
to mind.
 Have the organisation and responsibilities been agreed? one that comes to mind.
 Stage 2 – Scheduling and time/resource analysis v 1.2

Objectives Fundamental principles

Objectives Fundamental principles
 To identify the activities needed to deliver each work  The time and resources needed to complete each
To identify
 package, andthe activities
sequence needed
them to deliver
according eachlogical
to their work The time
 activity and resources
usually depend onneeded to complete
the sequence eachthe
in which
package, and sequence them according to their logical
dependencies. activity usually
activities depend
are carried out. on the sequence in which the
dependencies. activities are carried out.
 To estimate the time and resources needed to carry out  Since the time and resources needed to complete an
Toactivities
 the estimate inthe
thetime and resources
specified sequence. needed to carry out Since the
 activity are time andinterdependent,
usually resources needed to complete
it makes sense an
to
the activities in the specified sequence. activity both
estimate are usually interdependent,
of these it makes sense to
at the same time.
 To construct a schedule that takes account of logical estimate both of these at the same time.
To construct and
 dependencies a schedule
resourcethat takes account of logical
availability.  Scheduling must take account of resource availability.
dependencies and resource availability.  Scheduling must take account of resource availability.

Process description
Process description
2.1 Identify the activities needed to deliver each work package. Also identify Step 2.1 Identify activities &
2.1 any
Identify the activities
key events needed
(milestones) to deliverwith
associated each work
the package.
delivery Also identify
of products, dependencies
any key events (milestones) associated with the delivery
important decisions, or external dependencies. Sequence the activities of products,
important
and decisions,
milestones accordingor external
to their dependencies. Sequence
logical dependencies, the activities
to create an
and milestones
activity network. according to their logical dependencies, to create an
activity network.
2.2 Estimate the time and resources needed to complete each activity and Estimate time &
2.2 record
Estimate
the the time and
underlying resources needed
assumptions to complete
as a Basis of Estimate each activity and
(BoE).
Step 2.2
record the underlying assumptions as a Basis of Estimate (BoE). resources
2.3 Develop an initial schedule that takes account of the logical dependencies
2.3 between
Developactivities.
an initial schedule
Calculatethat the takes account
Total Float for of theactivity
each logical and
dependencies
identify
between
the Path(s). IfCalculate
Criticalactivities. the initial the Total Float
schedule doesfor each
not meetactivity and identify
the required
the Critical
timescales Path(s).
then If thealternative
investigate initial schedule does not
schedules meet themaking
or consider required
timescales then investigate alternative schedules or consider making Develop & analyse
tradeoffs. Analyse the time-phased resource requirements and, if Step 2.3
tradeoffs. adjust
necessary, Analyse thethe time-phased
schedule to takeresource
account requirements and, if
of resource availability or
schedule
tonecessary, adjust the
improve resource schedule to take account of resource availability or
utilisation.
to improve resource utilisation.

Activity network and schedule Primary outputs

Activity network and schedule Primary outputs
 Activity network
C D E  Activity network
 Time/resource estimates
 Time/resource estimates
J  Time/resource analysis
 Time/resource analysis
 Activity schedule
A B F G H K L  Activity schedule
 Assumptions
 Assumptions

I Critical path = { A ,B ,C ,D ,E ,J ,K , L }

Week
1 6 11 16 21 26 31

A: Design PCB layout

Critical activities
B: Simulate & tune layout
C: Manufacture PCB Supplementary outputs
Supplementary outputs
D: Fix sockets & connectors  Milestone schedule
 Milestone schedule
E: Test PCB  Range/three-point estimates
 Range/three-point estimates
F: Select component supplier  Probabilistic schedule analysis
Total float  Probabilistic schedule analysis
G: Place order for components  Critical Chain schedule
 Critical Chain schedule
H: Await component delivery  Resource schedules/profiles
I : Develop test plan Non-critical  Resource schedules/profiles
J: Assemble motherboard activities

K: Test motherboard
L: Motherboard complete
Milestone

Key criteria Hints and tips

Key criteria Hints and tips
 Have all the activities needed to deliver the work  Use range estimates or three-point estimates to identify
Have all been
 packages the activities needed to deliver the work
identified? Use range
 areas estimates
of ambiguity or three-point estimates to identify
or uncertainty.
packages been identified? areas of ambiguity or uncertainty.
 Have all logical dependencies (including external  Where possible, estimates should be developed by the
Have all logical
 dependencies) dependencies
been identified? (including external Wherewho
 people possible,
will beestimates should
carrying out the be developed
work, by the
in consultation
dependencies) been identified? people
with the who willmanager
project be carrying out the
or work work, manager.
package in consultation
 Has a Basis of Estimate been recorded for each with the project manager or work package manager.
Has a Basis of Estimate been recorded for each
 estimate?  Don’t try and analyse the time-phased resource
estimate? Don’t try andfor
 requirements analyse
every the time-phased
single resource: itresource
is normally
 Have the critical path(s) and near-critical activities been requirements singleresources
for everywhich resource:are
it islikely
normally
Have the critical path(s) and near-critical activities been
 identified? fairly clear, in advance, to
identified? fairly clear, in advance,
constrain the schedule. which resources are likely to
 Does the schedule take account of resource availability? constrain the schedule.
 Does the schedule take account of resource availability?
 Have resources with long lead times been identified?
 Have resources with long lead times been identified?
 Stage 3 – Cost estimating and budgeting v 1.2

Objectives Fundamental principles

Objectives Fundamental principles
 To develop a hierarchical framework for planning and  Since budgets are normally constrained, we need to
To develop
 controlling a hierarchical
resource framework
consumption for planning
and financial and
costs. Since budgets
 monitor are normally
actual costs constrained,
against planned costswe
on need to
a regular
controlling resource consumption and financial costs. monitor
basis actualthat
to ensure costs against
timely plannedaction
corrective costs can
on aberegular
 To estimate the quantities and financial costs of the basisiftothere
ensure
To estimate
 resources the quantities
needed to deliver and
eachfinancial costs of the
work package. taken is athat timely corrective
significant variance. action can be
resources needed to deliver each work package. taken if there is a significant variance.
 To develop time-phased budgets as a basis for  Making good progress against the schedule is often not
To develop time-phased
 performance budgets as a basis for Makingtogood
 enough progress
guarantee againstItthe
success. schedule
is also is often
important to not
monitoring and control. enoughthe to guarantee success. It is alsoconsumption
important to
performance monitoring and control. monitor planned and actual resource
monitor
(or financialthecosts)
planned and actual
in relation resource
to the consumption
progress made.
(or financial costs) in relation to the progress made.

Process description
Process description
3.1 Develop a Cost Breakdown Structure (CBS) to hierarchically decompose Step 3.1
Develop cost
3.1 the
Develop
projecta resources
Cost Breakdown Structure
and their financial(CBS)
coststo intohierarchically
componentsdecompose
that can breakdown structure
the project resources and their financial
be estimated for each work package and subsequentlycosts into components
aggregated that
up can
the
be estimated
various breakdownfor each work package
structures. For each andofsubsequently
the lowest level aggregated
elementsup in the
various
the CBS, breakdown structures.
define any rates neededFor each of the
to convert fromlowest
nativelevel elements in
resource
the CBS, (e.g.,
quantities defineunits
any rates needed totoconvert
or unit-hours) financial from native resource
costs.
quantities (e.g., units or unit-hours) to financial costs. Step 3.2 Estimate costs
3.2 Estimate the quantities (e.g., in units or unit-hours) and financial costs
3.2 ofEstimate the quantities
the resources needed to (e.g., in units
deliver eachor unit-hours)
work package,and andfinancial costs
aggregate
of the resources needed to deliver each work package,
these estimates up the various breakdown structures. Record the and aggregate
these estimates
underlying up the as
assumptions various
a Basisbreakdown
of Estimatestructures.
(BoE). Record the
underlying assumptions as a Basis of Estimate (BoE).
3.3 By associating resource and cost estimates with elements of the Create time-phased
3.3 schedule,
By associating
develop resource and cost
time-phased estimates
budgets with and
(periodic elements of the for the
cumulative) Step 3.3
schedule,
work develop
packages time-phased
and other budgets
key control (periodic
points and cumulative)
(e.g., Control Accounts)for
on the
budgets
work
the packages
various and other
breakdown key control points (e.g., Control Accounts) on
structures.
the various breakdown structures.

Cost breakdown and (cumulative) time-phased budget Primary outputs

Cost breakdown and (cumulative) time-phased budget Primary outputs
 Cost Breakdown Structure (CBS)
 Cost Breakdown Structure (CBS)
Project X Resources  Resource/cost estimates
 Resource/cost estimates
 Time-phased budgets
Activity / Human Resources Total  Time-phased budgets
Work Tools &
Materials
Sub-  Assumptions
Package Design Test Equipment contracts  Assumptions
Engineers Engineers
M-h £ M-h £ £ £ £ £
A
B
C
D
E
Total
Supplementary outputs
Supplementary outputs
 Range/three-point estimates
£  Range/three-point estimates
Budget at Completion  Probabilistic cost analysis
 Probabilistic cost analysis
 Cash flow forecasts
 Cash flow forecasts
+ schedule = Planned cost

1 2 3 4 5 6 7 8 9 10 11 12
Week

Key criteria Hints and tips

Key criteria Hints and tips
 Have all the resources needed to deliver the work  Use range estimates or three-point estimates to identify
Have all been
 packages the resources needed
mapped onto theto deliver the work
CBS? Use range
 areas estimates
of ambiguity or three-point estimates to identify
or uncertainty.
packages been mapped onto the CBS? areas of ambiguity or uncertainty.
 Does the CBS include discrete elements for the  Not all project managers are responsible for a financial
Does the CBS
 constrained include discrete
components elements for the
of the budget? Not all project
 budget. However,managers
they stillare responsible
need to monitorforresource
a financial
constrained components of the budget? budget. However,
consumption to provide still need
theyearly to monitor
warning resource
of problems.
 Does the CBS include discrete elements and their consumption to provide early warning of problems.
Does thefor
 attributes CBSkeyinclude discreteindicators
performance elements (e.g.,
and their
the total  Whatever structure is used to create the budgets, it
attributes
human for key
resource performance
requirement, indicators
measured in (e.g., the total
man-hours)? Whatever
 must structure
be applied is used to
consistently createeach
against the work
budgets, it
package.
human resource requirement, measured in man-hours)? must be applied consistently against each work package.
 Has a Basis of Estimate been recorded for each  You may not need to create a new CBS for each project.
Has a Basis of Estimate been recorded for each
 estimate? You may
 Some not need use
organisations to create a new CBS
standardised for of
forms each
CBSproject.
for
estimate? Some organisations use
particular types of project. standardised forms of CBS for
particular types of project.
 Stage 4 – Risk analysis and response planning v 1.2

Objectives Fundamental principles

Objectives Fundamental principles
 To identify the risks associated with each work package.  Once the plan has been developed it should still be
 To identify the risks associated with each work package. Once the plan
 considered hasuntil
a draft beenitsdeveloped
risk content it should still be
has been
 To determine the overall risk exposure and the considered a draft untilmay
its risk
To determine
 contribution the overallrisks.
of individual risk exposure and the analysed. This analysis leadcontent has been
to the plan being
contribution of individual risks. analysed.
modified This analysis
to include may lead to actions.
risk management the plan being
 To prioritise risks for further management. modified to include risk management actions.
 To prioritise risks for further management.  Plans should be risk-efficient (i.e., should include no
 To develop cost-effective risk management actions Plansrisk
should
To develop and
cost-effective
 more thanbe risk-efficient
is necessary (i.e., should
to provide include
a given levelnoof
 (responses) incorporaterisk management
them actions
into the plan. more riskandthan is risk
necessary to provide a given level of
(responses) and incorporate them into the plan. “return”), the exposure should be
“return”), andwith
commensurate the risk exposure
the risk should be
appetite.
commensurate with the risk appetite.

Process description
Process description
4.1 Identify the risks associated with each work package, and any Step 4.1 Identify risks
4.1 dependencies
Identify the risks associated
between with identify
risks. Also each work thepackage,
causes ofand eachanyrisk, and
dependencies between risks. Also
the effects (consequences) if it should occur. identify the causes of each risk, and
the effects (consequences) if it should occur.
4.2 Evaluate the risks in terms of: their probability of occurrence; impact on
4.2 the
Evaluate the budget
schedule, risks inand
terms of: their
scope (i.e., probability
in terms of of occurrence;
time, cost and impact on
the schedule, budget and scope (i.e., in terms
performance); proximity in time; and the ease with which of time, cost
theyandcan be
performance); proximity
Analyse & prioritise
detected before the impactinistime; and the
realised. ease with
Prioritise which
the risks they
for can be
further Step 4.2
risks
detected before the impact is realised. Prioritise the
management according to the values of these attributes. Agree who will risks for further
bemanagement
responsible foraccording
managing to the
each values
risk. of these attributes. Agree who will
be responsible for managing each risk.
4.3 Identify and evaluate a range of options for handling the risks. These
4.3 actions
Identify and
will evaluate
typically fallaunder
rangeaofnumber
optionsoffor handling
generic the risks.
response These
strategies
actions will typically fall under a number of generic response strategies Plan risk management
(e.g., ignore, avoid, accept, transfer, include as assumption, mitigate, Step 4.3
(e.g., ignore,
develop avoid,plan).
contingency accept,Select
transfer, include
the most as assumption,
cost-effective mitigate, of
combination
actions
develop
risk contingency
management plan).
actions and Select the most
incorporate them cost-effective
into the plan. combination of
risk management actions and incorporate them into the plan.

Risk analysis and response planning Primary outputs

Risk analysis and response planning Primary outputs
Describing and analysing risks  Risk descriptions/models
 Risk descriptions/models
 Qualitative/quantitative risk analysis
WBS ID Risk Cause Effect Prob. Impact Priority  Qualitative/quantitative risk analysis
Cause  Risk management actions
 Risk management actions
 Cost-benefit analysis
 Cost-benefit analysis
 Assumptions
 Assumptions

Risk
Risk

Prioritising risks Selecting response strategies

2 3 4 5 5 B D

2 2 3 4 5 Manage
Effect
proactively Supplementary outputs
Prob. 2 2 3 4 5 Prob. Supplementary outputs
 Probability-Impact Diagrams
Manage  Probability-Impact Diagrams
1 2 3 4 5 reactively  Probabilistic schedule/cost risk
Probabilistic schedule/cost risk
 analysis
1 2 3 4 5 A C analysis
 Sensitivity analysis
 Sensitivity analysis
 Decision trees
Impact Impact  Decision trees
 Influence diagrams
Priority  Influence diagrams
A = Ignore
B = Include as assumption
C = Accept or Transfer
D = Avoid

Key criteria Hints and tips

Key criteria Hints and tips
 Have all the assumptions made during planning been  Assumptions made during planning are an important
Have all for
 reviewed thepotential
assumptions
risks?made during planning been Assumptions
 source made during
of risk information planning
(e.g., are an important
assumptions made
reviewed for potential risks? source
about of risk dependencies
external information (e.g., assumptions
or interfaces, or themade
 Are the causes and effects of each risk understood? about external dependencies
 Are the causes and effects of each risk understood? availability and performance ofor interfaces, or the
resources).
 Is the plan risk-efficient? availability and performance of resources).
 Is the plan risk-efficient?  Remember that most risk management actions do not
 Is the risk exposure commensurate with the appetite? Remember that
 Is the risk exposure commensurate with the appetite?
 come for free, butmost riskincur
usually management
some form actions
of timedoand
not
 Have risk owners been specified? come
cost for free,
penalty. but forget
Don’t usuallytoincur some
include form
them in of
thetime and
plan.
 Have risk owners been specified? cost penalty. Don’t forget to include them in the plan.
 Have all mitigation activities been included and  Since it is not usually feasible to identify every possible
Have all for
 budgeted mitigation activities been included and
in the plan? Since
 risk it is the
not planning
usually feasible toitidentify everyto possible
budgeted for in the plan? during process, is important keep
 Have budgets been set aside for contingency plans and a risk
lookduring
out forthe planningrisks
emergent process,
during it the
is important to keep
project control
Have budgets
 dealing been set
with emergent aside for contingency plans and
risks? a look
cycle, andouttarget
for emergent
analysis risks during theaccordingly.
and responses project control
dealing with emergent risks? cycle, and target analysis and responses accordingly.
 Monitoring and control v 1.2

Objectives Fundamental principles

Objectives Fundamental principles
 To inform decision-making processes at all levels in the  Apply the principles of closed-loop control to monitor
To inform
 project decision-making
organisation, processes
and to take at all levels
any corrective in the
action Apply the principles
 performance of closed-loop
against the control
plan at regular to monitor
intervals, and
projecttoorganisation,
needed ensure that and to takeare
objectives any corrective action
achieved. performance
take against
any corrective the needed
action plan at regular intervals,
to achieve the and
needed to ensure that objectives are achieved. take any corrective action needed to achieve the
objectives.
 To identify problems and emergent risks early enough
To identify objectives.
 while there isproblems
still timeand
to doemergent
somethingrisks earlythem.
about enough
 Monitor trends in performance over a period of time as
while there is still time to do something about them. Monitor trends
 To communicate regular progress to the project team
 well as the “spot”inperformance
performancewithoverrespect
a periodto of
a time as
To other
communicate regular progress well as the “spot” performance with respect to a
 and stakeholders in order thattoconfidence
the projectand
team baseline. This allows us to distinguish between
and other stakeholders in order that confidence and baseline. and
assignable Thiscommon
allows uscauses
to distinguish between
of variation.
commitment towards the project is maintained.
commitment towards the project is maintained. assignable and common causes of variation.

Project control cycle

Project control cycle PLAN IT DO IT REVIEW IT
1. Identify the objectives and constraints, and
1.develop
Identifya the
plan.objectives
Review andand baseline
constraints,the and
plan. Obtain authorisation to proceed. the
develop a plan. Review and baseline
plan. Obtain authorisation to proceed. Step 1 Step 2 Step 6
2. Do some work.
2. Do some work.
3. Measure performance and update the
3.original
Measure performance
estimates and update
and forecasts. the
Update Confirm
original estimates and forecasts.
the schedule and budget forecasts to take Update Develop plan Do work objectives
the schedule
account of the and
latestbudget forecasts to take
information. achieved
account of the latest information.
4. Investigate the causes of any significant
4.variations
Investigatewiththe causestoofthe
respect anybaseline.
significant
variations with respect
Review the associated risks and to the baseline.
Review the associated risksdevelop
and Decide Measure
assumptions. If necessary, options Step 5 corrective Step 3
for taking corrective action. develop options
assumptions. If necessary, performance
for taking corrective action. action & re-forecast
5. Agree on any corrective action that is
5.required
Agree on andany corrective
update action
the plans that
(via is
Change
required
Control andbaseline
if the update the plans (via Change
is changed).
Control if the baseline is changed).
6. Confirm that the objectives have been Analyse
6.achieved
Confirm and
thatthat
the the
objectives
required have been
products progress,
achieved
have been and that theObtain
delivered. required products
formal sign-off issues & risks Step 4
if have been delivered. Obtain formal sign-off
appropriate.
if appropriate.

Tools for visualizing performance trends Performance monitoring techniques

Tools for visualizing performance trends Performance monitoring techniques
Milestone Status date  Schedule analysis – Monitor variations in the forecast
trend Schedule
 schedule withanalysis
respect – toMonitor variations
the baseline, in the
as well forecast
as changes
schedule with respect to the baseline, as well as changes
n
ar

c
p

chart to the critical path(s) and remaining float of activities.

De
Ju

Se
M

to the critical path(s) and remaining float of activities.

1
1

1
1

 Budget analysis – Monitor variations in the forecast

Budget
 budget analysis
with respect –toMonitor variations in the forecast
the baseline.
1 Dec
budget with respect to the baseline.
 Milestone trend charts – Monitor the forecast dates
EVM bulls-eye chart
Milestone
 and trend
actual dates of charts – Monitor
key milestones asthe forecastofdates
a function time.
1 Sep and actual dates of key milestones as a function of time.
 Earned Value Management (EVM) – Monitor “earned
Earned
 value” andValue
actualManagement (EVM) value/cost
cost against planned – Monitor “earned
(see
1.2
1 Jun value”Value
Earned and actual
Projectcost against planned value/cost (see
Management).
Earned Value Project Management).
 Risk analysis –Monitor confidence values or probability
Risk analysis
 distributions –Monitor
associated withconfidence valuesofor
key elements probability
the
1 Mar distributions associated with key of elements
schedule or budget, as a function time. of the
CPI 1.0 schedule or budget, as a function of time.
 Buffer management “fever charts” – Monitor the
Buffer management
 consumption of schedule“fever charts”
and budget – Monitorbuffers
contingency the
Forecast/ asconsumption
a function ofoftime
schedule and budget
(see Critical Chaincontingency
Project buffers
actual as a function of time (see Critical Chain Project
Management).
date 0.8 Management).
 Burn-down charts – Monitor the work remaining as a
0.8 1.0 1.2 Burn-down
 function of time charts – Monitor
(assuming the worktoremaining
it is possible as a
quantify the
function
work usingofan
time (assuming metric).
output-based it is possible to quantify the
SPI
work using an output-based metric).

Key criteria Hints and tips

Key criteria Hints and tips
 Have the plans been baselined?  The performance indicators associated with the schedule
 Have the plans been baselined? Thebudget
 and performance
are notindicators associated
the only ones with
you will the schedule
usually need
 Is performance being monitored on a frequent enough
Is performance
 basis being monitored
so that corrective action can on
be ataken
frequent enough
in a timely toand budget
track are not
to ensure youthe onlythe
meet ones you will
project usually
success need
criteria.
basis so thatmanner?
corrective action can be taken in a timely to track to ensure you meet the project success criteria.
and effective  Don’t forget to involve the project team in the
and effective manner? Don’t forget
 monitoring andtocontrol
involveprocess
the project team
as well as in
thetheinitial
 Are output-based metrics being used to measure monitoring and control process as well as the initial
Are output-based
 performance metrics
(i.e., what being
does used complete”
“percent to measure mean planning process.
planning process.
inperformance
reality)? (i.e., what does “percent complete” mean  Remember that the purpose of control is not to hold
in reality)? Remember
 meetings andthat
talkthe purpose
about of control
progress. is not toishold
The purpose to
 Are the schedule and budget forecasts updated to take
Are theofschedule
 account progressandandbudget
revisedforecasts
estimates?updated to take meetings and talk about progress.
monitor progress, to compare progress topurpose
The the plan, is and
to
account of progress and revised estimates? tomonitor
take theprogress,
necessary to action
compare progressthe
to achieve to project’s
the plan, and
 Are changes to the project scope subject to formal to take the necessary action to achieve the project’s
Are changes
 Change toprocedures?
the project scope subject to formal objectives.
Control objectives.
Change Control procedures?
 Other information v 1.2

Techniques for planning larger projects Principles of effective planning and control
Techniques for planning larger projects Principles of effective planning and control
 Staged planning – The project is split into a number  Divide-and-conquer – Manage complexity by breaking
 ofStaged
discreteplanning
stages. An – The project
outline planisissplit into a number
developed for the Divide-and-conquer
 down the various elements – Manage
of the plancomplexity by breaking
in a structured
of discrete
project stages.together
as a whole, An outlinewithplan is developed
more detailed plansfor the downBut
way. thedon’t
various elements
forget to keepoftrackthe plan
of thein dependencies
a structured
project
for as a whole,
each stage. together
The plans with more
for each stage detailed plans
are usually way. But
between don’t forget
elements as you keep track of the dependencies
togo.
for each stage.
developed towardsThe theplans
end offorthe
each stage are
preceding usually
stage. between elements as you go.
developed towards the end  Integrated approach – Don’t plan and control the
This approach is a useful wayofofthe preceding
limiting stage.
risk exposure Integrated
 various projectapproach
functions – in Don’t
isolationplan(e.g.,
and control the
scope, quality,
This there
approach is a usefulabout
way ofthe limiting risk exposure various project
when
when
is uncertainty requirements, the cost, time, risk), functions
as they are in all
isolation (e.g., scope,
interdependent. quality,
Instead,
work tothere is uncertainty
be performed, about theresources,
the available requirements,
or thethe cost, time, risk), as they are all interdependent.
adopt a more integrated approach by bringing them Instead,
work to be performed, the available resources, or the adopt a at more
project environment.
project environment. together key integrated
control pointsapproach
on theby WBSbringing
(e.g.,them
work
 Hierarchical planning – Planning and control is togetheror
packages at control
key control points on the WBS (e.g., work
accounts).
Hierarchical
 carried out in a planning
hierarchical– Planning
fashion soand thatcontrol
lower is
level packages or control accounts).
carried  Keep it simple, systematically – Only add more detail
plans andout
theirin aassociated
hierarchical fashion
control so that
systems arelower level
nested  toKeep it simple,
the plan where thesystematically
cost of doing –soOnly and add
the more detail
increased
plans and their associated control systems are nested to the planit where
within elements of the higher-level plans.
within elements of the higher-level plans. complexity brings the
withcost
it isofjustified
doing so byandthethe increased
amount of
 Rolling Wave planning – Only the near-term work complexityititprovides.
information brings with it is justified by the amount of
Rolling Wave
 packages are planned planning – Only
in detail, the the
while near-term
far-termworkwork information it provides.
packages(sometimes
are plannedcalled in detail, whilePackages)
the far-term  Team collaboration – Don’t forget that the plan
packages Planning are work Team collaboration
 represents – Don’t
the team’s vision forforget that the
achieving the objectives.
plan
packages
planned (sometimes
in outline only. called Planning Packages) are represents the team’s vision forinachieving the objectives.
planned in outline only. So make sure they are involved its development and
So subsequent
any make sure they are involved
changes during the in monitoring
its developmentand and
any subsequent
control process. changes during the monitoring and
control process.

Terminology
 Activity – A task, operation, or process consuming  Risk – An uncertainty that, if it occurs, could affect one
Activity
 time – A task,
and possibly operation,
other or process consuming
resources.  orRisk
more – project
An uncertainty that, if it occurs, could affect one
objectives.
time and possibly other resources. or more project objectives.
 Baseline – A snapshot of a plan (or element of a plan)  Schedule – A timetable showing when activities and
Baseline
 that is used–asA asnapshot
point of of a plan (or element of a plan)
reference. Scheduleare
 milestones – Aplanned
timetable
to showing
occur overwhen activities
a period and
of time.
that is used as a point of reference. milestones are planned to occur over a period of time.
 Budget – The agreed cost or quantification of  Scope – The work content and products of an activity
Budget –
 resources The agreed
needed cost oran
to complete quantification
activity by aofset time. Scope
 (i.e., what– The
is in work content
and what and products of an activity
is out).
resources needed to complete an activity by a set time. (i.e., what is in and what is out).
 Critical Path – A sequence of activities through an  Total Float – The total amount of time that an activity
Critical
 activity Path –where
network A sequence of activities
each activity in thethrough
sequence an Total
 can Float – without
be delayed The total amountthe
delaying of time that
project an activity
finish date, or
activity
has network
zero or negativewhere
totaleach activity in the sequence
float. can be delayed
violating a schedulewithout delaying the project finish date, or
constraint.
has zero or negative total float. violating a schedule constraint.
 Duration – The estimated or actual time required to  Work Breakdown Structure – A hierarchical
Duration
 complete an–activity.
The estimated or actual time required to Work Breakdown
 decomposition of the Structure
project scope– A(i.e.,
hierarchical
the project work
complete an activity. decomposition
and products) intoof work
the project scope (i.e., the project work
packages.
 Milestone – A key event selected for its importance in and products) into work packages.
 the project. – A key event selected for its importance in
Milestone  Work Package – A discrete element of project scope at
the project. Work
 the Package
lowest level of–each
A discrete
branchelement of project
of the work scope at
breakdown
 Product – The measurable output of an activity. the lowestCollectively,
level of each branch
 Product – The measurable output of an activity. structure. the work of the work
packages breakdown
specify all of
 Resource – Anything other than time that is necessary structure.
Resource
 for – Anything other than time that is necessary the work andCollectively, the work
products included packages
in the project.specify all of
carrying out an activity. the work and products included in the project.
for carrying out an activity.

Recommended reading
 Advanced Project Management: A Structured Approach 4/e, F. Harrison, D. Lock, Gower Publishing, 2004.
 Advanced Project Management: A Structured Approach 4/e, F. Harrison, D. Lock, Gower Publishing, 2004.
 Critical Chain Project Management 2/e, L. Leach, Artech House, 2004.
 Critical Chain Project Management 2/e, L. Leach, Artech House, 2004.
 Earned Value Project Management 3/e, Q. Fleming, J. Koppelman, Project Management Institute, 2006.
 Earned Value Project Management 3/e, Q. Fleming, J. Koppelman, Project Management Institute, 2006.
 Effective Opportunity Management for Projects, D. Hillson, Marcel Dekker, 2003.
 Effective Opportunity Management for Projects, D. Hillson, Marcel Dekker, 2003.
 Effective Work Breakdown Structures, G. Haugan, Management Concepts Inc., 2002.
 Effective Work Breakdown Structures, G. Haugan, Management Concepts Inc., 2002.
 Managing Successful Projects with PRINCE2 5/e, Office of Government Commerce, TSO Books, 2005.
 Managing Successful Projects with PRINCE2 5/e, Office of Government Commerce, TSO Books, 2005.
 Practical Project Management: Tips, Tactics and Tools, H. Levine, John Wiley & Sons, 2002.
 Practical Project Management: Tips, Tactics and Tools, H. Levine, John Wiley & Sons, 2002.
 Practice Standard for Work Breakdown Structures 2/e, Project Management Institute, 2006.
 Practice Standard for Work Breakdown Structures 2/e, Project Management Institute, 2006.
 Project Management 8/e, D. Lock, Gower Publishing, 2003.
 Project Management 8/e, D. Lock, Gower Publishing, 2003.
 Project Management and Project Planning 7/e, J. Gordon, K. Lockyer, FT Prentice Hall, 2005.
 Project Management and Project Planning 7/e, J. Gordon, K. Lockyer, FT Prentice Hall, 2005.
 Project Management: Planning and Control Techniques 4/e, R. Burke, John Wiley & Sons, 2003.
 Project Management: Planning and Control Techniques 4/e, R. Burke, John Wiley & Sons, 2003.
 Project Planning and Control 4/e, A. Lester, Elsevier Butterworth-Heinemann, 2003.
 Project Planning and Control 4/e, A. Lester, Elsevier Butterworth-Heinemann, 2003.
 The Handbook of Project-Based Management 2/e, R. Turner, McGraw-Hill, 1998.
 The Handbook of Project-Based Management 2/e, R. Turner, McGraw-Hill, 1998.

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