APM Introduction to Project Planning SIG Can Be Found in Appendix C

©Association for Project Management 2008 ©Association for Project Management 2008 Introduction to Introduction Project Planning Project ©Association for Project Management 2008 Prioritising Project Risks ISBN: 978-1-903494-26-4 ISBN: 978-1-903494-80-6 ISBN: 978-1-903494-63-9 ISBN: 978-1-903494-24-0 ISBN: 978-1-903494-27-1 ISBN: 978-1-903494-15-8 ISBN: 978-1-903494-94-3 Earned Value Management Earned Value APM SIG GUIDES SERIES SIG GUIDES APM APM Introduction to Programme Management APM Introduction Models to Improve the Management of Projects Models to Improve Interfacing Risk and Earned Value Management Interfacing Risk and Earned Value Directing Change: A Guide to Governance of Project Management A Guide to Governance of Project Directing Change: Co-Directing Change: A Guide to the Governance of Multi-Owned Projects A Guide to the Governance of Co-Directing Change: ©Association for Project Management 2008 Association for Project Management Association for Project APM Planning Specific Interest Group APM Planning Introduction to Introduction Project Planning Project ©Association for Project Management 2008 HP27 9LE Buckinghamshire Ibis House, Regent Park Ibis House, ISBN 10: 1-903494-28-1 Copy editor: Merle Read ISBN 13: 978-1-903494-28-8 Cover design by Mark Design Association for Project Management Association makes no claim to these trademarks. Summerleys Road, Princes Risborough Summerleys Publishing Manager: Ingmar Folkmans ©Association for Project Management 2008 ©Association for Project Typeset by ReﬁneCatch Limited, Bungay, Suffolk by ReﬁneCatch Limited, Bungay, Typeset British Library Cataloguing in Publication Data is available British Library Cataloguing in Publication or omissions in this publication or the consequences thereof. or omissions in this publication or the consequences All registered trademarks are hereby acknowledged and the publisher All registered trademarks are hereby acknowledged Department of the Association for Project Management at the address above. Department of the Association for Project research or private study, or criticism or review, as permitted under the Copyright, as permitted under the or criticism or review, research or private study, Designs and Patents Act, 1988, and its amendments, or in the case of reprographic Designs and Patents Act, 1988, and its amendments, rights organisations, such as the Copyright Licensing Agency. Enquiries concerning Licensing Agency. rights organisations, such as the Copyright reproduction in accordance with the licences issued by the appropriate reprographic reproduction in accordance with the licences reproduction outside these terms and in other countries should be sent to the Rights reproduction outside these terms and in for Project Management cannot accept legal responsibility or liability for any errors for Project Management cannot accept legal United Kingdom exceptions are allowed in respect of fair dealing for the purposes of are allowed in respect of fair dealing United Kingdom exceptions writing of the Chief Executive of the Association for Project Management. Within the Management. Within Executive of the Association for Project writing of the Chief and its conformity with all relevant legal and commercial obligations. The Association and its conformity with all relevant legal system or transmitted, in any form or by any means, without the express permission in in any form or by any means, without system or transmitted, All rights reserved. No part of this publication may be reproduced, stored in a retrieval part of this publication may be reproduced, All rights reserved. No Readers are responsible for the correct application of the information in this publication Readers are responsible for the correct application ©Association for Project Management 2008 ix vii 15 20 21 21 09 12 12 01 03 08 08 21 14 15 16 17 17 18 18 19 22 25 30 viii v Contents phase manager techniques planning project definition Relevance to different types of organisation

What is project planning? 6.1 Appropriateness 6.2 Planning 4.1 The concept phase 4.2 The 3.1 Reasons to plan 3.2 6.3 Strategic 4.3 The implementation phase 4.4 The handover phase 4.5 The closeout phase 5.1 The sponsor 5.2 The 5.3 The specialist planner owner/control account manager The WBS element 5.4 team members and key stakeholders Other project 5.5 6.4 Detailed planning

6 How to plan 4 When to plan List of figures Foreword Acknowledgements 1 Introduction 2 3 Why plan? 5 Who plans? Characteristics of good planning 7 ©Association for Project Management 2008 31 33 37 vi Appendix A – Further information Appendix Contents B – Planning techniques Appendix SIG about the APM Planning Appendix C – Information ©Association for Project Management 2008 1 4 13 26 28 23 vii List of figures List Planning is at the heart of project management Planning is at the in the project management plan Planning is recorded through the project life cycle Planning continues process The strategic planning The detailed planning process The relationship of techniques to strategic and The relationship detailed planning 6.1 1.1 2.1 4.1 6.2 6.3 ©Association for Project Management 2008 Mike Nichols, viii Foreword Chairman of the Association for Project Management Chairman of the Association for The point of this publication is to raise the profile of planning and put The point of this publication is to Guide heralds the rebirth of the APM The publication of this APM SIG its membership and driven by indi- The APM is an organisation serving When you are about to start a project, organise an event or launch a new to start a project, organise an When you are about is the basis of all good is vital. Good planning product, good planning looks simple. But it like many important processes, projects. Planning, that for that is all around us in the projects The evidence to prove isn’t. as many good projects, have failed. There are just one reason or another examples of first-class planning. and many superb however, of project management. Each gener- it in its rightful place at the forefront success stories. It is right that each gen- ation has its leading planners and underpinning planning to see if there eration of planners revisits the ideas restating. or something worth is something new, its light will burn brightly and encourage those of hope Planning SIG. We who aspire to be good planners and us who are already planners, those of course. In a sustainable way, those of us who work with planners. might make a contribution like might be one yourself. You viduals. You Stay in touch. this one, someday. ©Association for Project Management 2008 builds on work performed has been prepared by the current has been prepared ix Acknowledgements Introduction to Project Planning Introduction to The APM Introduction to Project Planning SIG can be found in Appendix C. Information about the APM Planning committee of the APM Planning Specific Interest Group (SIG), with con- APM Planning Specific Interest committee of the Curtis (lead author), Ken Sheard (SIG chairman), Neil tributions from Jones, Pete Mill, Mike Ian Granville, Allan Andrew Chillingsworth, views of the Planning SIG It summarises the Waskett. Prescott and Paul committee. in Ciorra, and, chaired by Tony by the original Planning SIG committee, Colin Payne and Ken Phil Lewey, alphabetical order: Mike Harvey, Sheard. This ©Association for Project Management 2008 ©Association for Project Management 2008 defines Quality management Scheduling Resource Cost management estimating 1 1 ) defines project management as (APM BoK) defines project Project planning Risk Introduction Earned management many individual project management disciplines value management value Planning is at the heart of project management Planning is central to effective project management and integrates Planning is central to effective project management Scope management strategies Procurement APM Body of Knowledge Planning overlaps with and is key to integrating many individual Planning overlaps with and is 1.1). project management disciplines (Figure Planning should therefore be at the heart of successful project manage- Planning should therefore be at the ment. Good project planning is critical to project success. Good project planning is critical The APM Planning SIG (see Appendix C) has a particular interest in The APM Planning SIG (see Appendix Figure 1.1 ‘the process by which projects are defined, planned, monitored, controlled projects are defined, planned, ‘the process by which The APM BoK that agreed benefits are realised.’ and delivered so • The • planning as ‘the process of identifying the means, resources and actions process of identifying the means, planning as ‘the an objective.’ necessary to accomplish project planning and believes that: • ©Association for Project Management 2008 . . It is therefore to raise awareness of 2 . Introduction to Project Planning The meaning of project planning is misunderstood by many in the project planning is misunderstood The meaning of community project management How to plan. Who plans? When to plan Why plan? What is project planning? The discipline of planning is undervalued. The discipline of Good planning practice is often neglected. Good planning practice Education and training in planning practice is limited and often poor in planning practice is limited Education and training The value of effective planning is only occasionally recognised. planning is only occasionally The value of effective The Planning SIG also believes that: SIG also believes The Planning • • • • • addresses five key questions: • • • • • It also ventures to define the characteristics of good planning. It does not It also ventures to define the characteristics planning tools and techniques: the include a detailed treatment of these in future publications. Planning SIG intends to address Introduction to Project Planning Introduction project APM planning, and to stimulate debate in the project management project APM planning, and to stimulate planning community in particular community in general and in the As a result of these factors, the central contribution of good planning factors, the central contribution As a result of these and it often does not is not fully appreciated, to project management to project success. The purpose of this make its maximum contribution APM ©Association for Project Management 2008 s concept phase and continues 3 2 What is project planning? is project What develop a plan to achieve the deliverables. define what has to be accomplished and delivered, typically stated in define what has to be accomplished terms of scope, time, cost and quality; determine the business case for, and the success criteria/objectives of, and determine the business case for, the proposed project; understand the need, problem or opportunity that the project will understand the need, problem deliver; address and the benefits that it will Planning is the process of identifying the means, resources and actions Planning is the process of identifying • • • The unique, transient nature of a project means that a strategy and a plan nature of a project means that The unique, transient a good strategy and must be developed. A project with for its execution of success than a poorly has a far greater chance that is properly planned and enables the project Planning develops the strategy, planned project. how the project can project sponsor to determine manager and the Hence planning is and deliver the required benefits. achieve its objectives a key element of project management. this by draw- objectives. It achieves necessary to accomplish the project’s of an organisation (including the les- ing on the expertise and knowledge projects), and on external parties if sons that it has learned from previous appropriate, in order to: • through definition and into implementation. It starts with the project through definition and into implementation. project. strategy and an initial concept of the need and objectives of the and It evaluates options and identifies the optimum. Its outputs inform through increase the maturity of the project strategy and objectives delivers iteration, and provide information for the business case. It gate much of the information that enables the organisation, through in the reviews (at the end of life-cycle phases or at other key points allowed project), to determine whether the project is viable and should be to continue. Planning commences during the project’ Planning commences during the ©Association for Project Management 2008 erables Deliv Objectives Resources 4 Oct 2008 ement Plan 29 30 1 2 3 4 5 6 7 8 9 10 11 12 g Sep 2008 1d 1d 1d 1d 1d 1d 1d 1d 1d 1d DurationDuration What? Finish Finish 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 How much? Schedule StartStart 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 29/09/2008 When? Project Mana Project Task Name Task Task Name Task Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7 Task 8 Task 9 Task 10 Task 1 2 3 4 5 6 7 8 9 IDID 10 Where? Project planning Project provides a reference document for managing the project provides a reference Who? Planning is recorded in the project management plan Why? How? £ The PMP documents the outcome of the planning process and subsequently the outcome of the planning process and The PMP documents need Budget Project Planning contributes to the preparation of, and is recorded by, the proj- by, and is recorded preparation of, contributes to the Planning Figure 2.1 ect management plan (or other formal documentation, which may vary which other formal documentation, plan (or ect management 2.1. The PMP (or its to organisation) – see Figure from organisation process and subse- the outcome of the planning equivalent) documents the project. The a reference document for managing quently provides Introduction to Project Planning Introduction ©Association for Project Management 2008 s con- What is project planning? What is 5 s cost and budget, the breakdown of the , the processes, resources (people, facilities, equipment, , the processes, resources (people, ‘Where’ defines the geographical locations where the work will be per- ‘Where’ defines the geographical locations where the work will be formed, which impacts on resources, timescales and costs. ‘When’ defines the project’s sequence of activities and timescales, ‘When’ defines the project’s including milestones and any phases/stages. ‘Who’ includes a description of key project roles and responsibilities and of the resources that will be required during execution. budget and the cost monitoring process. ‘How much’ defines the project’ ‘How’ defines the strategy for management and execution of the proj- ‘How’ defines the strategy for management ect, its handover and the monitoring, control and tools and techniques) to be used reporting arrangements. ‘What’ describes the objectives, the scope, the deliverables and their ‘What’ describes the objectives, the success criteria for the project acceptance criteria. It also describes that will be used to monitor its and the key performance indications take into account the project’ progress. The ‘what’ needs to straints, assumptions and dependencies. ‘Why’ is a statement of the change to be delivered by the project, which ‘Why’ is a statement of the change problem or opportunity being includes a definition of the need, delivered. This is frequently developed addressed and the benefits to be in the business case. The PMP documents how the project will be managed in terms of the how the project will be managed The PMP documents • • • • • • • PMP is owned by the project manager and confirms agreements between confirms agreements manager and by the project PMP is owned approved by It is and other stakeholders. the sponsor manager, the project project manager, the organisation, and by the representing the sponsor, with stakeholders is project team. Sharing the PMP representing the the project, especially as common agreement of important in establishing have changed during the expectations of the project may the stakeholders’ it should owns the PMP, Although the project manager planning process. this removes ambi- the project team during planning: be developed with handover of the proj- and assists in effective develops commitment guity, to execution. ect from planning how (and how much), who, when and what, following questions: why, where. ©Association for Project Management 2008 just not s critical path; 6 . It calls on various disciplines including scope logical sequence for the activities in the work breakdown structure, logical sequence for the activities and the project’ their interdependencies and durations, responsibilities for the work, which may be defined by a responsibility responsibilities for the work, which assignment matrix (RAM); project organisation, often defined by an organisation breakdown project organisation, often defined structure (OBS); definition of the processes and resources to be used; definition of the processes and resources scope of work, usually defined by a work breakdown structure (WBS); scope of work, usually defined by scope of supply/deliverables and their acceptance criteria; scope of supply/deliverables and technical solutions (in conjunction with the product design process); technical solutions (in conjunction definition of constraints, assumptions, dependencies and risks, includ- definition of constraints, assumptions, contingency provisions. ing definition of risk responses and cost estimate, related to the work breakdown structure and providing a cost estimate, related to the work for earned value management; basis for allocation of budgets and implementation strategies, such as the acquisition/procurement strategy; implementation strategies, such as The PMP is progressively developed during planning and is subse- developed during planning The PMP is progressively what, the why, must contribute to or determine It follows that planning • • • • • • • The PMP also describes the policies and plans for managing changes, plans for managing the policies and also describes The PMP and environ- health, safety governance, configuration, communication, risk. quality and ment matters, acquisition/procurement, document. Once as a live, configuration-controlled quently managed how the project will be provides a baseline description of agreed, the PMP and updated through is then periodically reviewed executed, which a contractual relation- is especially important where change control. This the project team and client. ship exists between project. Planning who, when and where of the proposed how much, how, range of outputs, including: therefore has to generate a wide • Introduction to Project Planning Introduction about planning tools or software, although they have their role in helping about planning tools or software, although they have their role in • • cost management, scheduling, resource management, risk management, estimating and budgeting, and earned value management. It is It is evident that planning is non-trivial: is an intellectual process It is evident that planning is non-trivial: is an intellectual of the which should harness the full knowledge, experience and potential made organisation, with all the lessons it has learned, measurements it has and new ideas it can muster ©Association for Project Management 2008 What is project planning? What is 7 Having so much leverage on the likelihood of successful project execu- leverage on the likelihood of successful Having so much to develop and document the plan. Neither is planning merely the is planning the plan. Neither and document to develop to be involved are likely although planners of specialist planners, province be owned and driven the most simple projects – it must in planning all but team, the sponsor with involvement of the project by the project manager and other stakeholders. to the management of great potential to add value tion, planning has to the size and of planning should be appropriate projects. The extent be omitted. project, but planning should never complexity of the ©Association for Project Management 2008 In particular, the In particular, Communication is important to 8 3 As with many things in life, all projects Planning includes the evaluation of options Planning includes Projects require commitment from everyone Projects require commitment from Why plan? Why 3.1 Reasons to plan 3.1 Reasons can be subject to the unexpected. Planning provides the baseline To prepare for the unexpected. To To provide the basis for effective project monitoring and control, and To a baseline against which progress can be measured. is schedule and the budget define the baseline against which progress monitored so that any variances can be identified and corrective actions taken. concerned. One of the best ways to ensure commitment is to build the concerned. One of the best ways thus gaining buy-in from every- plan with the inputs of all concerned, one working on the project. To obtain commitment. To facilitate effective communication. To in all but the most trivial projects effective project management and PMP defines the objectives of the requires specific management. The on larger or more complex project and how it will be implemented: how project communications will projects, it should define specifically communicate particular informa- be managed. Elements of the plan communicates when activities must tion: for example the schedule so that resource availability can be managed. occur, To light the way forward. light the way To ensures that the best Evaluation of options for project implementation. and can be committed to by all strategy for the project is selected which option can best deliver the key stakeholders, since all can see the eval- objectives. Organisations in some sectors formalise project’s in which options are related to uation of options in value engineering, the client (or sponsor) considers to be project objectives based on what important. 5. 4. 2. 3. 1. The fundamental reason to plan is to maximise the chances of project reason to plan is to maximise The fundamental numerous additional reasons: success. There are ©Association for Project Management 2008 Why plan? Previously, organisations Previously, Some project-based organisations 9 he client organisation. A client organisation requires the deliverables T might only have had to produce formal accounts, but compulsory had to produce formal accounts, might only have arena in now extend into the project management requirements may – via, for example, ISO 9001 and general and planning in particular a project-based organisation must corporate governance requirements, meet relevant standards. through the courts that it pays to have learned an expensive lesson regularly and to be in control of have proper plans, to update them pay out huge legal fees, on top of scope change. These organisations preparing claims: this is not a cheap which are the time and cost of it is generally much more cost- option for any organisation, and effective to plan properly. For use as a basis for arbitration. To respond to compulsory requirements. respond to To against which variances can be identified and corrected. Planning and corrected. can be identified which variances against Statistical and risk. of uncertainty include considerations should also organisations to Carlo simulation) enable methods (e.g. Monte particularly with range of project outcomes, model the potential of risks during and cost. Identification regard to schedule and enables the number of ‘unknown unknowns’ planning reduces should adverse and budgets to be established contingency plans events occur. of the project, needs the benefits that the project is intended to deliver and pays for the project, but chooses not to implement the project itself – it selects a contracting organisation for that purpose. Client organisations include the high-street bank which requires new account a management software, the train-operating company which requires a new signalling system and the ministry of defence which requires air force. new air defence system for its nation’s 3.2 Relevance to different types of organisation 3.2 Relevance to different 1. Planning, and the plans it produces, is important to numerous types of Planning, and the plans it produces, according to type: organisation, but its relevance varies 7. 6. ©Association for Project Management 2008 10 A contracting organisation specialises in A contracting organisation The plan must of course identify resources and costs and be the The plan must of course identify Once the contract has been awarded, monitoring and control needs The client organisation must build a business case for the deliver- case for the build a business organisation must The client The contracting organisation. The contracting the opportu- for client organisations. Generally, implementing projects competition. project must be won in nity to implement a client’s basis of a proposal to the client and Planning is required both as the subsequently to implement the proj- for the contracting organisation project scope contains or what the ect. It does not matter what the the contracting organisation needs a technological solution might be: the client. plan as the basis of its proposal to earned value type calculations if the basis for the contractor to operate It must contain all the complexity. project is of sufficient value and defined deliverables, to meet the project objectives, particularly and the plan, costed, underpins required performance specification; client. The resources required and the price offered to the potential available to complete the work, and defined in the schedule need to be to ensure that, as a business, it has the contracting organisation needs implementation of its port- the resources available for the concurrent management process to be in folio of projects. This requires a resource from all of the organisation’s place built around the resource outputs has project plans. This process also shows the times that the business resource available, so the best use of resources can be made. Finally, is prior to the final bid plan and price being submitted a risk review held to ensure that some form of contingency or reserve is held against This of course becomes the beginning of risk risks that might occur. management for the contractor. of to be performed, and the plan is the reference for measurement, ables of the project, undertaking sufficient of its own planning to be of its own planning sufficient the project, undertaking ables of cost. The planning needs in terms of scope, time and able to define its the client is an be sufficient to ensure that undertaken should and contract for able satisfactorily to compete ‘informed customer’, of proposals and to judge the merits and feasibility the project, and been awarded, contractors. The contract having plans from potential becomes part of the con- plan usually the contracting organisation’s client organisation. for progress reporting to the tract and is the basis Introduction to Project Planning Introduction 2. ©Association for Project Management 2008 Why plan? An in-house projects organisation An in-house projects 11 itself requires the deliverables of the project, needs the benefits that the deliverables of the project, needs itself requires the project, choosing to to deliver and pays for the project is intended to obtain the project itself. Planning is required implement the and subsequently to to proceed with the project, necessary approvals for project monitoring and control. provide the baseline The in-house projects organisation. The in-house projects both time and cost. If the project is going well, then all is well, but if well, then all is project is going and cost. If the both time on indi- to exceed the budget the spend starts starts to slip or the plan identify the prob- the variances against the plan vidual work packages, team to get the to be addressed by the project lem areas that need track. project back on 3. ©Association for Project Management 2008 12 4 4.1 The concept phase When to plan When at this stage because until the project has been defined it cannot at this stage because until the project On behalf of the organisation, the project sponsor appoints the project On behalf of the organisation, the Initially, there are mostly questions about the project and few answers there are mostly questions Initially, The concept phase is least expensive in terms of overall project effort, . The project manager should have a good idea there is, as yet, no plan. The project manager should have The concept phase is the first phase in the project life cycle. During this The concept phase is the first phase is confirmed, the overall feasibil- phase, the need, opportunity or problem a preferred solution is identified. ity of the project is considered and on the probable need for a project – manager and briefs him or her probable be reviewed and approved for implementation. The nucleus of the project be reviewed and approved for implementation. manager and the concept phase begins. team is formed around the project – and probably an indication of ‘what’, in terms of ‘why’ from the sponsor, All of an outline of the objectives, scope and deliverables of the project. and the other planning questions must be answered. Planning is top-down enough strategic, helping to develop the business case, and providing detail to justify continuing the project into the definition phase. effective planning but planning is a large part of this effort. Moreover, of the is critical because it has maximum leverage on the likely success Planning starts immediately the organisation identifies the probable need the organisation identifies Planning starts immediately life cycle. The empha- continues throughout the project for a project, and planning to monitor- strategic planning through detailed sis changes from is being implemented the plan, and while the project ing and control using to replan if necessary. to maintain the plan and action may be required the life cycle, and the changing emphasis throughout Figure 4.1 illustrates – formal points in a project where indicates typical timing of gate reviews and benefits are reviewed and decisions its plan, progress, expected cost to the next phase. are made on whether to continue ©Association for Project Management 2008

When to plan When to

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n Planning continues throughout the project life cycle to monitoring and control using the plan, and maintenance of the plan the plan, and maintenance and control using to monitoring o ss The emphasis changes from strategic planning through detailed planning planning through changes from strategic The emphasis e ag ce ver uc le t s ing ec lann roj P p Detailed Plan maintenance and replanning Strategic Why? What? Conceptphase Deﬁnition phase Implementation Handover phase Closeout phase phase Figure 4.1 ©Association for Project Management 2008 14 4.2 The definition phase 4.2 The definition for internal projects: to convince the sponsor, and via the sponsor the for internal projects: to convince the sponsor, organisation, that implementation of the project should be funded. for client projects: to convince the sponsor, and via the sponsor the the sponsor, for client projects: to convince be proposed to the client, has a good organisation, that the project may of chance of winning a contract from the client, and has a good chance being successfully implemented; The questions ‘why?’ and ‘what?’ will have been answered in the con- The questions ‘why?’ and ‘what?’ The strategic plan is developed, with enough detail to inform the busi- is developed, with enough detail The strategic plan • During the definition phase the preferred solution is further evaluated During the definition phase the process. This phase requires a transition and optimised – often an iterative to work out the scope, time, cost from strategic to detailed planning, The plan must be developed in suf- and quality objectives of the project. the project to enable its implementa- ficient detail to expose issues with a sound basis for implementation – a tion to be justified, and to provide subsequently can be monitored and baseline against which the project controlled. although there may be further refine- cept phase – perhaps definitively, ‘how’ is developed in more detail, in the definition phase, ments. Now, and ‘where?’ to be answered. The enabling ‘how much?’, ‘who?’, ‘when?’ answers must be sufficiently robust: • project. Selection of the best implementation option and strategies is option and best implementation Selection of the project. of the project. implementation to effective fundamental phase. If the spon- review at the end of the concept ness case and a gate of the project, that are convinced of the viability sor and the organisation risk to the organisation, desired benefits with acceptable it can deliver the into the definition phase. it is allowed to continue At the end of the definition phase, the plan should be baselined ready for At the end of the definition phase, the plan should be baselined ready use during implementation for monitoring and control purposes. Subsequent changes to the plan should be under formal change control. Introduction to Project Planning Introduction ©Association for Project Management 2008 When to plan When to 15 -duration projects, organisations may operate rolling -duration projects, organisations 4.4 The handover phase 4.3 The implementation phase implementation 4.3 The , is planned in enough detail for precise monitoring and con- , is planned in enough detail for precise replanning: definition and implementation of changes to the plan, replanning: definition and implementation within the existing scope (e.g. in under formal change control, either with changes to scope (e.g. in response response to critical variances) or to client-requested changes). maintenance of the plan: definition and implementation of routine maintenance of the plan: definition change control, to address minor changes to the plan, under formal variances; The plan defines how the project will be handed over to the client or to The plan defines how the project will be handed over to the client Planning activities in the implementation phase include: Planning activities in the implementation trol. The next stage/time window must be planned in greater detail and trol. The next stage/time window baselined prior to implementation. During the handover phase, the project deliverables are handed over to During the handover phase, the project deliverables are handed the client and/or the users. deliverables. Monitoring and control, the internal users of the project’s plan maintenance and replanning continue as in the implementation phase. • In the implementation phase, the plan is executed. The plan defines how phase, the plan is executed. In the implementation the basis for monitoring be implemented and provides the project should at which time the project should be formally launched, and control. The and key stakeholders, communicated to the project team plan is formally concept and definition resources not involved in the including additional earned value manage- particularly those applying phases. Larger projects, to confirm that the an integrated baseline review (IBR) ment, may hold by the project team. comprehensive and is agreed plan is correct and • of the implementation, or the next wave planning. Only the next stage time window On larger and longer ©Association for Project Management 2008 16 4.5 The closeout phase 4.5 The closeout The valuable lessons learned at the end of a project should add to the The valuable lessons learned at the Some projects have extended life cycles, including operation and dis- including operation life cycles, have extended Some projects In the closeout phase, project matters are finalised, final project reviews project matters are finalised, In the closeout phase, and the project team is project information is archived are carried out, redeployed. for planning knowledge bank to provide the building blocks organisation’s will be contained in the maintained on future projects. Many of the lessons will define exactly how implementa- plan – which at the end of the project arising from monitoring and control tion was carried out – and in reports information on variances and their activities. The reports may contain as threats in future projects and causes: the causes can be identified norms, may require adjustments to organisational planned out. Variances when future projects are planned, so that better estimating data is available processes. or to the organisation’s Introduction to Project Planning Introduction posal phases. In these phases, planning is again similar to the implemen- again similar to planning is In these phases, posal phases. tation phase. ©Association for Project Management 2008 17 5 5.1 The sponsor Who plans? Who approves the plan to enable the project manager to establish the base- approves the plan to enable the be monitored and controlled. line against which the project will approves resource levels provides funding sets the project priority communicates the project purpose and value to the organisation’s senior management; ensures that the project team has the time and resources it needs to ensures that the project team has the time and resources it needs achieve success; finalises (and approves any changes to) the project objectives and finalises (and approves any changes to) the project objectives success criteria; considers the project interfaces that lie outside the control of the considers the project interfaces that lie outside the control of project manager; Along with the management body that approves projects, the sponsor: Along with the management body • • • The key role of the sponsor in project planning is to ensure that the The key role of the sponsor in and committed to a common purpose project participants are focused on manager can achieve this within the and vision of success. The project who can expand that commitment core project team, but it is the sponsor with its support functions. to include the wider organisation • Planning should engage all the key stakeholders in the project. It is led engage all the key stakeholders Planning should by the project by the project manager and undertaken and co-ordinated from any of the cannot proceed effectively in isolation team. Planning informed parties. must feed off the inputs from all stakeholders – it • • • In addition, the sponsor: • ©Association for Project Management 2008 18 5.2 The project manager 5.2 The project 5.3 The specialist planner ensures timely resolution of issues affecting project success. of issues affecting project ensures timely resolution makes or endorses strategic project decisions; makes or endorses participates in major project reviews and approves key deliverables; project reviews and approves participates in major paves the way for change in the affected organisational units; in the affected way for change paves the commits specific resources from the organisation; specific resources commits A planner is a specialist in project planning (and often in other project On smaller projects, the project manager may personally facilitate the On smaller projects, the project Planning, monitoring and control, risk management and change control Planning, monitoring and control, project management and are the are the basic processes of effective In all but the smallest projects, the responsibility of the project manager. of these project manager is generally supported in the implementation and processes by specialists planner(s). (Other titles such as scheduler depending on the organisation and the project co-ordinator may apply, these precise allocation of responsibilities.) In very large/complex projects, to that ‘specialist’ roles may carry responsibility and accountability equal of managing the totality of a less complex project. process management processes) whose role is to facilitate the planning • • the planning process in order to role is to manage The project manager’s be realised within the The planning deliverables must deliver a good plan. and to a schedule that will satisfy the available budget and resources, where appropriate, deadlines for pro- needs of project gate reviews and, is responsible for the deployment posals to clients. The project manager his or her team and for planning inter- of effective planning processes by project manager must keep the sponsor faces with key stakeholders. The escalate issues to the sponsor. appraised of progress and as necessary planning outputs; on larger projects, the planning process and capture the the tasks to member(s) of the project project manager is likely to delegate planners. team, which may include specialist • Introduction to Project Planning Introduction • • ©Association for Project Management 2008 Who plans? 19 control account manager 5.4 The WBS element owner/ 5.4 The WBS element The planner should lead the project team’s application of the software lead the project team’s The planner should of previous planner can bring invaluable experience An experienced Delegation to WBS element owners should be based on their specific in order to ensure that project’s objectives are translated into an are translated objectives project’s to ensure that in order the team and its the inputs of by collating plan. This is achieved optimum a proactive approach into the plan, requiring subject matter expertise and problem- co-ordination, communication and good organisational, solving skills. develop particular ele- which are likely to be used to tools and techniques likely to be the prin- the planner is plan. In particular, ments of the overall WBS into the project’s software, and will translate cipal user of scheduling schedule. logic and ultimately into the project schedule network from them, and hence can not only projects and the lessons learned will be implemented, but can help directly influence how the project ensure its viability. On larger projects, the project manager may delegate to other managers On larger projects, the project manager of elements of the overall scope of the responsibility for implementation and must deliver specific elements of work. These managers then ‘own’ earned value management, such the WBS. In organisations implementing account managers (CAMs). The WBS managers are often termed control ensuring that the defined scope of work element owner is accountable for account) is achieved to the budget, for a particular WBS element (control in accordance with the project require- timescale and quality standards responsible for the development, execu- ments. WBS element owners are tion and control of their work scope within the schedule. Each manages the WBS element as a contract with the project manager. their skills, experience and aptitude to manage the work. It follows that involvement in the planning process ensures that their expertise improves ensures the quality of the plan. In addition, involvement in the planning to hit that they achieve ownership of their scopes of work and are ready the ground running when implementation starts. ©Association for Project Management 2008 s con- , appropriate subcontract 20 s required delivery schedule. and key stakeholders 5.5 Other project team members 5.5 Other project tractual requirements are met by the plan and contractual deliverables tractual requirements are met by are aligned with the customer’ Procurement specialists should ensure that the plan reflects an appro- Procurement specialists should ensure strategy priate acquisition/procurement themselves that the client’ Commercial specialists should satisfy System engineers should ensure that the plan includes the application of System engineers should ensure that design stages should be evident a rigorous system engineering process: reviews should be apparent as key in the WBS and schedule and design milestones. ensure that manufacturing set-up and Manufacturing specialists should in the plan as required, and low-rate initial production are included cost estimates are based on relevant that production schedules and norms for the organisation. boundaries and realistic lead times. The involvement of a WBS element owner in the planning process is a in the planning element owner of a WBS The involvement Introduction to Project Planning Introduction • • The role of other project team members and stakeholders is to ensure that The role of other project team members contribute to the most effective plan. their specialist skills and experience For example: • • subset of the project manager’s involvement. Each WBS element must be WBS element Each involvement. the project manager’s subset of a mini-project. But in scheduled and resourced – like properly defined, into the overall project, element must be integrated addition, the WBS logical links to other of internal dependencies and through consideration WBS elements. ©Association for Project Management 2008 vailable Planning must be accom- s timescales for a response A high-cost project is not necessarily A high-cost project 21 6 Uncertain or risky projects are likely to Uncertain or risky projects are likely 6.1 Appropriateness A project may be of high criticality to the organisa- A project may be of high criticality How to plan How . 6.2 Planning techniques of planning should be appropriate to the nature of the be appropriate to the nature of planning should amount , and indirectly because the organisation requires a greater burden of , and indirectly because the organisation to a request for proposals; resources may be determined by the extent to a request for proposals; resources formed prior to project launch and by to which the project team can be the availability of specialist planners. Time and resources available for planning. and resources Time time and resources. A plished within constraints of available client’ time may be determined by a potential tion, for example a ‘must win’ contract or a key internal change pro- tion, for example a ‘must win’ contract require additional planning effort on ject. Organisations are likely to such projects. Project criticality require additional planning, to reduce uncertainty and risk to levels require additional planning, to to other key stakeholders. acceptable to the organisation and Project uncertainty and risk. Project size (cost) and complexity. Project size (cost) project size. Small does tend to increase with complex, but complexity if including new technology or a projects may be complex, for example and complex projects typically complex supply chain. Large size/cost because of their size and complex- require additional planning directly ity proof of viability at gate reviews. • The planning techniques used vary throughout the project life cycle, The planning techniques used vary throughout the project life evolv- reflecting the transition from strategic to detailed planning and the must ing emphasis of the questions about the project that planning • • project. Considerations include: project. Considerations • The ©Association for Project Management 2008 22 6.3 Strategic planning For an internal project for the organisation, the answer to ‘why?’ is For an internal project for the organisation, the answer to ‘why?’ Planning techniques need to be chosen carefully. The aim is to assist the The need to be chosen carefully. Planning techniques Planning in the early phases of the project life cycle is strategic rather than Planning in the early phases of the on ‘why’, ‘what’ and ‘how’. The detailed: it is top-down and focuses the strategic framework for the answers to these questions provide asks ‘why’ and ‘how’ questions of the project plan. The project manager in structured interviews. The project sponsor and other key stakeholders may not be directly accessible to the client is a key stakeholder but the organisation is participating in in a situation where project manager, project. In this to undertake the client’s competitive bidding for a contract to be employed to obtain the client’s situation, indirect means may need intelli- perspective: informal contacts, stakeholder analysis and market analy- gence. Some of the answers given will prompt further research or sis. Requirements management may commence. from its often in the form of a business objective, to move an organisation this present position to a desired future state. The vehicle that delivers follows change is a project, and planning provides the route. It therefore that the answer to ‘why?’ may be found in the business plan. Introduction to Project Planning Introduction answer. Not all of these techniques are planning-specific – many have – are planning-specific all of these techniques Not answer. than project some are wider applications, and management other project planning. Figure 6.1 they can all contribute to effective management – but to strategic and detailed of some of the techniques shows the relationship techniques. B briefly defines these and other planning; Appendix the sponsor and the key and the team, and through them project manager and to provide the conceptualise and define the project, stakeholders, to used should be rele- and control. The techniques baseline for monitoring to be neither so simple and cost-effective. They need vant, appropriate as to confuse matters. significant issues, nor so complex that they ignore aided by that experience in project planning, often The project manager’s the techniques appropriate to the of the specialist planner(s), determines project. ©Association for Project Management 2008 How? Who? When? Where? Detailed How much? How How to plan How to Risk management Monte Carlo simulation Scope of work and WBS Scope of work and 23 uy and procurement strategy Top-down and bottom-up estimating Top-down b Make/ Requirements management Outline and detailed schedule Organisation design and responsibilities assignment Brainstorming Project context Functional analysis and value engineering Functional analysis and value Evaluation of options Evaluation Stakeholder interviews and analysis Stakeholder The relationship of techniques to strategic and detailed planning Strategic Why? What? As planning makes the transition from strategic to detailed, and the emphasis changes detailed, and the emphasis from strategic to makes the transition As planning from ‘why’ and ‘what’ to ‘how’ etc., so the application of planning techniques changes of planning techniques etc., so the application and ‘what’ to ‘how’ from ‘why’ Figure 6.1 ©Association for Project Management 2008 24 Of course a client’s or an organisation’s objective could be satisfied in a could be objective or an organisation’s a client’s Of course determine ‘why’ and and/or the client principally While the sponsor answers to the other plan- Strategic planning must provide preliminary level and is likely to involve consid- ‘Who’ is addressed at organisation An outline schedule is developed to address ‘when’. The organisation number of different ways. In response to the question ‘what?’, the answer the question ‘what?’, In response to of different ways. number or a new procedure, structure, an organisational change may be a physical elements. It is likely found to be a combination of these and is frequently including trade stud- evaluation of alternatives, to require the systematic design of the techni- to be closely linked with conceptual ies, and is likely and effort are likely a complex project, significant time cal solution. For answering ‘what?’. to be expended in of the project to ‘how?’ is principally the responsibility ‘what’, the answer should call on all the how the project is to be delivered team. Answering A the wider organisation can muster. expertise that the project team and projects can provide valuable sugges- review of lessons learned on similar Answering ‘how?’ requires effective tions and help avoid previous pitfalls. team and with functional experts else- communication within the project where in the organisation. consistent with the formulation of the ning questions – at a level of detail gate reviews. ‘How much?’ addresses strategic plan and sufficient to pass planning is likely to be answered the resources required, and in strategic or parametric techniques to by top-down estimating using comparative rough order of magnitude (ROM) cost. produce an order of magnitude or particular importance to the investment The answer to ‘how much?’ is of business case. appraisal usually required in the driving the organisation’s and capacity, eration of the core competencies and manufacturing strategies. The acquisition/procurement, outsourcing in house will be determined: extent to which the project is implemented access whether the organisation will seek risk-sharing partners (perhaps to be sub- particular competencies or capacities of the partners), what will will be contracted and the extent to which commodity procurements to be involved. For an overseas client, there may be offset requirements addressed. Considerations of offset and outsourcing touch on ‘where?’ or the must determine whether the project is likely to satisfy its own timescales. Large and complex projects may implementation client’s Introduction to Project Planning Introduction ©Association for Project Management 2008 How to plan How to 25 6.4 Detailed planning ‘How’ is developed by defining the scope of work, using a WBS. The ‘How’ is developed by defining the scope of work, using a WBS. Strategic planning should consider the context of the project – the should consider the context Strategic planning strategic planning process which deploys the The strategic planning are captured in an initial version of The outputs of strategic planning Detailed planning should commence only when the strategic plan for the Detailed planning should commence starts may be made, and scarce time project is sufficiently mature. False planning commences using the wrong and resources wasted, if detailed technical solution. The sponsor and implementation strategy or the wrong the strategic plan and particularly the the key stakeholders should endorse planning commences – though ‘what’ and the ‘how’ before detailed and detailed planning should be planning is usually highly iterative and in extreme cases may even chal- allowed to refine ‘what’ and ‘how’ lenge ‘why’, prompting a review of the overall rationale for the project. use to WBS should closely reflect the processes that the organisation will of work implement the project, both to ensure completeness of the scope by and also to ensure that the plan is naturally and instinctively followed and those performing the work. Each element of the WBS can be defined of documented (for example in a WBS dictionary) and detailed statements work (SoWs) can be prepared for subcontracts. justify the use of probabilistic techniques (Monte Carlo simulation) to (Monte Carlo techniques use of probabilistic justify the for the project. outcomes the range of probable evaluate environment in which social, technological and legal political, economic, define factors critical to – and this is likely to help it will be implemented success. the project’s planning is highly cre- in Figure 6.2. Strategic techniques is summarised Figure 6.2 gives creative activities, is highly iterative: ative and, like many in strategic planning of the steps likely to be involved only an impression than the simplest projects. for anything other outputs will populate other documents, such as the busi- Some the PMP. on at gate reviews – particularly the one ness plan, and all will be drawn seeks authorisation to proceed with at the end of the concept phase, which the project definition phase. ©Association for Project Management 2008 les bjectives 26 jectives? (If no, iterate.) (If no, jectives? Outline scope, Management Plan Evaluate options and Evaluate make down-selection make Take environment and environment Take Initial version of Project Initial version constraints into account constraints Need for project identified Need for schedule and cost estimate Proceed to detailed planning Perform investment appraisal investment Perform b and delivera Define objectives Set strategies to achieve o to achieve Set strategies Undertake gate review: Does the plan Undertake gate review: achieve the ob achieve Should the project continue? (If no, kill.) (If no, Should the project continue? it is a highly creative and highly iterative process creative and highly it is a highly Strategic planning answers the questions ‘why?’ and ‘what?’ questions ‘why?’ and answers the Strategic planning The strategic planning process and provides initial, high-level answers to the other questions: in practice, answers to the other initial, high-level and provides Figure 6.2 Introduction to Project Planning Introduction ©Association for Project Management 2008 How to plan How to 27 ‘How much’ and ‘who’ develop with the scope of work: an organisation of work: an with the scope and ‘who’ develop ‘How much’ a detailed schedule for the project or, ‘When’ involves development of amounts of data, and it is impor- Detailed planning generates copious tech- The detailed planning process which deploys the detailed planning best suited to implement the scope of work is designed alongside the WBS is designed alongside the scope of work to implement best suited The resulting respon- organisation breakdown structure. and defined in an the organisation, should matrix, mapping the work to sibility assignment is no ambiguity when mapping so that there demonstrate straightforward are assigned to commences. Organisational resources implementation cost estimate that will be develop the detailed, bottom-up activities to help of where the work will be budget. Consideration the basis of the project’s facilities, transporta- decisions about needs for new undertaken will inform analysis and and communications. Identification, tion, export licensing and exploit oppor- will enable measures to avoid threats evaluation of risks and will determinate how much contin- tunities to be built into the plan, for threats which cannot be eliminated. gency provision should be allowed usually consisting of a project for a larger project, a set of schedules detailed schedules. Scheduling involves master schedule and subordinate, in the time domain, usually using capturing the activities of the WBS frequently presented as a Gantt chart. scheduling software and most between the activities – the network Definition of the relationships activities enables the schedule to be logic – and of the duration of the dependencies must be addressed. The developed. External constraints and be determined, and if they are found not timing of key milestones can then critical path can be re- requirements, the project’s to meet the project’s timing is satisfactory. examined and revised until the project’s is not swamped by it. The data is tant to ensure that the project team groups for the purpose of building sorted and quantified into appropriate can be used to assist in this the plan. Hierarchical coding structures break- process, and product, work, organisation, resource, cost and risk down structures may all be applicable. The sponsor and key stakeholders but cannot be expected to review all of the detailed planning information must achieve confidence in it by the presentation of suitable summaries such as high-level schedules, ‘top 10’ risks and cost/budget summaries. but niques is summarised in Figure 6.3. Detailed planning is still creative is more structured than strategic planning, using more ‘hard’ techniques ©Association for Project Management 2008 bilities 28 bottom-up cost estimate Management Plan Define scope of work and assign responsi Updated version of Project Updated version Proceed to implementation Assign and level resources Assign and level Design project organisation Perform investment appraisal investment Perform Make Make Undertake gate review: Does the plan Undertake gate review: jectives? (If no, iterate.) (If no, the objectives? achieve Should the project continue? (If no, kill.) (If no, Should the project continue? Initial version of Project Management Plan Initial version Schedule work Ð constraints and dependencies Schedule work Ð constraints The detailed planning process other questions in sufficient detail for project implementation to proceed for project implementation in sufficient detail other questions Detailed planning begins with the answers to ‘why?’ and ‘what?’, and answers the and ‘what?’, and the answers to ‘why?’ begins with Detailed planning Figure 6.3 Introduction to Project Planning Introduction ©Association for Project Management 2008 How to plan How to 29 The outputs of detailed planning are captured in an updated version of planning are captured in The outputs of detailed and usually needing specialist software tools. Iteration is required to refine Iteration is required software tools. needing specialist and usually plan. the detailed and optimise such as an populate other documents, Some outputs will the PMP. on at gate reviews – plan, and all will be drawn updated business which seeks autho- at the end of the definition phase, particularly the one Where the project is the with project implementation. risation to proceed provides much of to a client, the detailed planning subject of a proposal required to form the proposal. the information ©Association for Project Management 2008 30 7 , and events which could not have been good planning Characteristics of Characteristics , even the best planning cannot guarantee project success. provide the basis for effective management of project implementation, provide the basis for effective management control of the project. and for effective monitoring and in competition for a client-funded project, provide the basis for a win- in competition for a client-funded ning proposal; sufficiently answer the planning questions to satisfy the organisation, sufficiently answer the planning the project; via gate reviews, that it should continue be agreed by the sponsor, on behalf of the organisation, and by other on behalf be agreed by the sponsor, key stakeholders; be owned by the project manager and the project team; be owned by the project manager Ultimately predicted during the project concept and definition phases may occur predicted during the project concept and definition phases may man- which can hinder the achievement of project objectives. The project to ager must then rely on other attributes of effective project management of bring the project to a successful conclusion. But while no guarantee project success, good project planning is one of the best ways of avoiding failure. • • Events foreseen as risks do occur • • Good planning delivers a plan that defines the implementation of the delivers a plan that defines the Good planning objec- of the project’s likely to ensure achievement project that is mostly must: be realistic and achievable, and tives. The plan must • Good planning harnesses all the skills and experience of the project man- Good planning harnesses all the and of the wider organisation and the ager and his or her project team, reflect the views and inputs of the key lessons it has learned. It must also also deliver the plan on time: the best stakeholders. Good planning must short, planning has dimensions of scope, plan, if just too late, is useless. In in its own right, requiring the time, cost and quality – it is a mini-project it. skills of the project manager to perform ©Association for Project Management 2008 edition, in the include reading th develops and expands on develops and expands 31 Website APM Body of Knowledge , 5 APM Body of Knowledge Terminology Further reading APPENDIX A APPENDIX Further information Further Scheduling Resource Management Budgeting and Cost Management Management Earned Value Stakeholder Management Project Quality Management Scope Management Relationship to APM Body of Knowledge Relationship Executing the Strategy Planning the Strategy 3.4 3.6 2.6 3.1 3.2 3.3 2.2 Association for Project Management: www.apm.org.uk Terminology used in this booklet is generally consistent with the Glossary Terminology contained in the APMof Project Management Terms Body of Knowledge. The above sections of the lists identifying documents containing additional information on project lists identifying documents containing planning. 3 2 Introduction to Project Planning This APM Introduction to principles described in the principles described following sections in particular: following sections ©Association for Project Management 2008 32 Abbreviations and acronyms and Abbreviations Body of Knowledge APMAPM BoK Management Association for Project CAMDCF account manager Control IBRIRR Discounted cash flow NPV Integrated baseline review OBS Internal rate of return PERT Net present value PMP Organisation breakdown structure review technique Programme evaluation and RAMROM Project management plan Responsibility assignment matrix SIG Rough order of magnitude SoWWBS Specific Interest Group Statement of work breakdown structure Work Introduction to Project Planning Introduction ©Association for Project Management 2008 An esti- The giving, A prediction of An approximate the difference between cash received and payments made during a specific period for the duration of a project. Communication receiving, processing and interpre- tation of information. Information non-ver- can be conveyed verbally, formally, passively, actively, bally, consciously and uncon- informally, sciously. Comparative estimating mating technique based on the Budget estimate estimate prepared in the early phases of a project to establish financial viability or to secure resources. Budgeting and cost management The estimating of costs and the set- ting of an agreed budget; the management of actual and forecast costs against the budget. Cash flow forecast 33 An estimat- APPENDIX B APPENDIX The unstructured The review of what Planning techniques Planning A technique for planning A technique for ing technique based on making estimates for every work package (or activity) in the work breakdown structure and summarising them to provide an overall estimate of the effort and cost required. Brainstorming ADePT and controlling design and engineering projects which accounts for the iterative nature of design/ engineering, while planning the information flow through such projects and identifying key design decisions. Benchmarking in other organisations are doing the same area. Organisations that appear to be particularly successful it in what they do and how they do may be taken as examples to be emulated, i.e. used as benchmarks. Bottom-up estimating generation of ideas by a group of people in a short space of time. Not all of these techniques are planning-specific – many have other techniques are planning-specific Not all of these wider than project applications and some are project management planning. they can all contribute to effective management – but ©Association for Project Management 2008 A The A technique The appraisal The identifica- An assessment of The use of a range of The use of a range Discounted cash flow (DCF) Discounted cash of relating future concept over the life inflows and outflows to a com- of a project or operation thereby allowing mon base value, the comparison of more validity in with different different projects of cash flow. durations and rates Estimating tools to produce techniques and estimates. Force field analysis used to identify the various pres- sures promoting or resisting change. Functional analysis tion and analysis of the functional attributes of different solutions. Impact analysis of the effect on project objectives a proposed change or of a risk occurring. Integrated baseline review (IBR) review following the establishment of the initial baseline, to ensure that it is comprehensive and correct and understood by the organisation. Investment appraisal of the value of a project, involving cash flow forecasting, discounted 34 The proce- An analysis A technique The process of A process where A networking tech- Introduction to Project Planning Introduction comparison with, and factoring with, and comparison similar cost of a previous from, the project or operation. Cost–benefit analysis of the relationship between the of the relationship an activity or costs of undertaking recurrent, and project, initial and to arise from the the benefits likely initially and changed situation, recurrently. Cost estimating a consensus view is reached by consultation with experts. It is often used as an estimating technique. predicting the costs of a project. Critical chain used to predict project duration by analysing which sequence of activities has the least amount of scheduling flexibility. Delphi technique nique based on Goldratt’s theory of nique based on Goldratt’s constraints that identifies paths through a project based on resource dependencies, as well as technological precedence requirements. Critical path analysis dure for calculating the critical path and floats in a network/ schedule. Critical path method ©Association for Project Management 2008 An A diagram An estimat- The design of A technique for A technique to Planning techniques Planning Order of magnitude/rough order magnitude/rough Order of (ROM) estimate of magnitude out to give a very estimate carried indication of approximate expected cost. Organisation design organisation the most appropriate for a project. Parametric estimating ing technique that uses a statistical relationship between historical data and other variables (for example square metreage in construction, lines of code in software development) to calculate an estimate. Pareto technique identify the minority of variables with the greatest impact on project objectives (familiar as the ‘20:80 rule’). Product flow diagram representing how products are produced by identifying their deri- vation and the relationships between them. It is similar to a network diagram, but includes products rather than activities. Programme evaluation and review technique (PERT) determining how much time a project needs to complete. 35 A tech- The decision A method used A technique for iden- A technique for A log of all the issues A log of all the cash flow analysis and the calcula- analysis and the cash flow and inter- period tion of payback nal rate of return. Issue log planning or exe- raised during the during plan- cution of a project; that issues are ning, it helps ensure implementation. resolved prior to Last planner tifying short-term ‘look ahead’ tifying short-term schedules based on a master schedule, and analysing constraints on activities which may prevent them being completed in accordance with the master schedule. The tech- of nique includes robust measures progress of the rate at which activities in the schedule are completed. decision Make-or-buy or to make a deliverable internally to buy it from a supplier: for example, whether to develop a software application in house or to purchase an existing or bespoke software application. Monte Carlo simulation nique used to estimate the likely range of outcomes from a complex process or project, by simulating the process under randomly selected conditions a large number of times. Network analysis to calculate a project’s critical path critical to calculate a project’s and activity times and float. ©Association for Project Management 2008 An esti- An estimate The identifi- An investiga- Optimisation of A process whereby Sensitivity analysis Sensitivity of effect on the outcome tion of the or data. changing parameters Simulation of a system some dynamic aspect (modelled) or project is replicated the real system, without using tech- often using computerised niques. Stakeholder analysis cation of stakeholders, their inter- to est levels and their ability influence a project. Three-point estimate in which an optimistic value (quickest, cheapest), a most likely value and a pessimistic value (slowest, most expensive) are all defined. cost estimating Top-down mate of project cost based on historical costs and other project to variables, subdivided down individual work packages or activities. engineering Value the conceptual, technical and oper- deliv- ational aspects of a project’s erables. 36 An The The process of The process of The process The process used to approach to planning in which only the current phase or time in period of a project is planned detail, future phases being planned Each phase pro- in outline only. duces a detailed plan for the next phase. Scheduling determine the sequence of activities in a project and its overall duration. This includes determining the logical interdependencies between activities and estimating activity durations, taking into account requirements and available resources. identifying, assigning and levelling identifying, assigning the resources needed by a project to enable the project to be imple- in mented with available resources an acceptable duration. Rolling wave planning process of capturing, analysing process of capturing, stated needs of a and testing the client/user/stakeholder. Resource planning Quality planning Quality stan- which quality determining and how to dards are applicable apply them. Requirements management Introduction to Project Planning Introduction ©Association for Project Management 2008 37 Next steps Membership and mission Membership APPENDIX C APPENDIX APM Planning SIG APM Planning Information about the about Information contributing to future issues of the APM Body of Knowledge. contributing to future issues of the reinforcing the professionalism and enhancing the standing of planners reinforcing the professionalism and enhancing educational frameworks for planning enhancing educational frameworks advancing the state of the art instigating debate in the APM and elsewhere on planning practice instigating debate in the APM and documenting and disseminating best practice documenting and disseminating best The Planning SIG’s mission is to advance and raise the profile and pro- mission is to advance and raise the profile The Planning SIG’s • • The Planning SIG is keen to receive feedback from the project planning community on this APM Introduction to Project Planning. Our contact details are listed over the page. • • • The APM Planning Specific Interest Group (SIG), reformed during 2007, Specific Interest Group (SIG), The APM Planning aerospace and defence, construction, comprises representatives of the as cross-sector project managers. The nuclear and rail sectors, as well good project planning is critical to proj- members of the SIG believe that at the heart of the project management ect success and should therefore be SIG should be considered as a link process. Accordingly the Planning between existing APM SIGs. by: fessionalism of project planning • ©Association for Project Management 2008 38 How to contact us Why join the planning SIG? the planning Why join help to foster relationships with business and with other professional help to foster relationships with groups. participate in the development of best practice, guidance, standards and participate in the development of planning; educational frameworks for project share views and concerns and exchange information with other plan- concerns and exchange information share views and ning professionals; be part of the leading UK group addressing project planning matters; UK group addressing project be part of the leading As a member of the APM Planning SIG, you will be able to: the APM Planning SIG, you will As a member of • Planning SIG, or to provide feedback For further information about the at [email protected]. on this document, please e-mail us • • Membership of the APM Planning SIG is open to all APM members and APM Planning SIG is open to Membership of the a particular interest in of corporate members who have to representatives project planning. • Introduction to Project Planning Introduction ©Association for Project Management 2008