PM0011 – Project Planning and Scheduling / Assignment Set- 1

Q.1 Explain in detail the project delay analysis methodology [10 Marks]Ans: Delay analysis is a forensic investigation into the events or issues that caused a project to run late. Delay analysts refer to ‘critical’ and ‘non-critical’ delays; the first are events causing delay to the project’s completion date and the second type affect progress on the project but do not directly impact the project completion date. During the past decade developments in computer technology and the availability of more advanced planning software packages has, in my view, changed the way in which delay claims and the results of a delay analysis are presented.

Delay Analysis Methodology: There are briefly two types of delay analysis methodology. The first type of delay analysis methodology is prospective; which demonstrates the theoretical or likely impact of the consequences of delaying events – rather than showing what in fact occurred. The basis of this methodology is to establish a programming model of the project, usually the contractor’s as planned programme, then impact the model by the application of delaying events. This type of methodology is commonly used to demonstrate what extension of time a contractor is due, as a result of the application of employer responsible delaying events. This is said to be the contractor’s entitlement. Entitlement in this context is derived from the results of a delay analysis and is not to be confused with contractual entitlement. In summary the prospective type of methodology is a theoretical calculation of the likely delay a delaying event(s) would cause to project completion. In other words, it focuses firstly on the delaying event and then demonstrates the likely delay to progress and ultimately project completion that is likely to flow from the event.

The second type of delay analysis methodology is retrospective. The retrospective analysis tries to show what actually occurred on a project; where the delays were; and what caused the delay to project completion. The analysis shows how actual progress differed from what was planned. By focussing on how the works actually progressed, the analysis will show when work activities were delayed, and from the results of the analysis, investigation of what caused the actual delays can be carried out. In summation, this type of methodology looks at what actually happened, what activities were actually delayed and only thereafter what caused the delay.

Both types of delay analysis methodology are to some degree subjective. The prospective analysis relies heavily on a programming model of the project and the delay analyst’s opinion on how the delay event was likely to influence the model. The retrospective analysis is, in my opinion, less subjective as it relies on actual progress. However, interpretation of the results as to what caused delay is subjective. This is because the delay analyst will usually have to consider a number of related issues as to what caused delay and apply his own experience and judgement.

Q.2 Describe all the project management knowledge areas. [10 Marks]Ans: The PMBOK teaches an approach towards project management that is recognized internationally. It can be applied to all types of projects, such as engineering, construction and software. The PMBOK divides the knowledge into Project Management Knowledge Areas, an approach that considers work as if it were being accomplished by processes.

The nine areas are: Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communications Management Project Risk Management

1. Project Integration Management: The processes and activities needed to identify, define, combine, unify, and coordinate process and project management activities within the Project Management Group are included in the Project Integration Management Knowledge Area. Characteristics of unification, consolidation, articulation and integrative actions crucial to project completion fall within the context of integration.

Decisions related to choices such as, concentration of resources, coordination of work efforts, and anticipating potential problems are addressed under integration. Other considerations including the balancing of competing objectives and the exploration of alternative actions are also within the domain of integration. Real world applications involving coordinated efforts of Project Integration Management components are seldom clearly defined by boundaries. A certain amount of overlap is to be expected. The interaction of these individual processes requires effective integration in Project Management.

There is no single way to manage a project. Experienced Project Management practitioners apply their knowledge, skills, and processes uniquely to each situation, depending on its circumstances, variables, and objectives. The mere fact that a particular process or technique was not utilized in a project does not mean that it was not considered. On the contrary, Project Integration Management and Team Management are charged with assessing the applicability of all processes and the level of implementation of those deemed appropriate to the success of the project when formulating the overall Project Integration Management Plan.

2. Project Scope Management: The project scope management plan refers specifically to the input/output mechanism that consists of a formalized document that is used for the purposes of detailing exactly how the

project scope will be defined, what means will be undertaken to develop the project scope, how the project scope will ultimately be verified, and exactly how any and all components of the work breakdown structure will be ultimately created and defined. The project scope management plan also will provide information and assistance in determining exactly how the actual scope of the project will ultimately be controlled in the management process by the project management team and or the project management team leader. The actual project scope management plan, as with most project management components, can be a very formally written document, or it can also be a much more informally written document. The detail level can vary wildly as well, depending on exactly what the needs of the project dictate.

3. Project Time Management: Project time management refers to a component of overall project management in which a timeline is analyzed and developed for the completion of a project or deliverable. Project time management consists of six different components or steps.

a. Activity Definition- Identifying and scheduling different components of the project management sequence that are required for completion of project deliverables.

b. Activity Sequencing- The process of project time management that defines the order in which deliverables must be completed.

c. Activity Resource Estimating- Indentifying and defining the types and quantities of resources and materials required to complete a deliverable.

d. Activity Duration Estimating- Identifying and estimating the timeline for completion of durables.e. Schedule Development- the analysis of the order of activities, timelines, resources, and schedule barriers

to develop a project schedule.f. Schedule Control- Project management intervention to mitigate changes to the product schedule

The project time management process is dynamic and may require input from several different teams each with individual project time management process in order to integrate the various interdependent component parts of the project to achieve the project deliverable(s). The processes are recurrent within each work package of the project and occur at least once within the project as a whole. This process is called the Develop Project Management Plan process. The output from this integrated team effort is called the schedule management plan and is a subset of the overall project management plan.

4. Project Cost Management: Project cost management is keeping your project within its defined budget. It is also an essential part of project management.

Cost estimating, cost budgeting, and cost control are three cost related processes that interact with each other and with other areas of project management. All of these processes require effort and a working knowledge of the cost of things. Depending on the complexity of the project they can require more than one person, and they may occur more than once during the life of a project.

Project cost management can be very simple, or extremely complex. If scrimping in one part of the project will increase, say, a maintenance cost after the end of the project, then that maintenance cost should be included in the project cost management strategy. This approach is sometimes` called life-cycle costing, and can reduce the cost of a project and improve the quality of the deliverable. But Project management should also consider what the project stakeholders think about the cost of the project. They will measure cost in different ways and at different times. Like looking at a brick from a different angle.

Cost estimating and cost budgeting are two different processes, but are often closely linked. On small projects they are often done by the same person because of this. Influencing cost is easiest early in the project, so it is important to define the budget in the scope of your project at the beginning. This includes creating a cost management plan, which has many benefits.

5. Project Quality Management: Project Quality Management is a critical aspect of the performing organization, and integral to project management. It includes the processes and activities that determine the quality policies, objectives, and responsibilities necessary to assure that project requirements are met. Project Quality Management implements the organization’s Quality Management System via policies, procedures, and continuous improvement activities, as appropriate. Processes critical to the Quality Management System include Quality Planning, Quality Assurance, and Quality Control.

Quality Planning is an integral part of project management. It identifies relevant quality standards and determines how they can best be satisfied.

Quality Assurance ensures that project management utilizes the quality processes needed to meet project requirements in a planned and systematic manner.

Quality Control monitors specific project outputs and determines compliance with applicable standards. It also identifies project risk factors, their mitigation, and looks for ways to prevent and eliminate unsatisfactory performance.

In summary, Project Quality Management is the foundation for the organization’s products and services.6. Project Human Resource Management: It involves organizing and managing a project team. The team is usually

made up of people with specific skills and responsibilities. The project team, also known as project staff, should be involved in plans and decision making from the beginning of the project. Team members should feel invested in the outcome of the project. This will increase loyalty and commitment to project goals and objectives. The number of team members and their responsibilities can change as the project develops.

The project management team also called the core, executive, or leadership team, is responsible for project planning, controlling, and closing and takes directives from the project team. Smaller project responsibilities can be shared by the team or designated by the project manager. The project management team and the project sponsor work together to secure funding, simplify scope questions, and influencing team members.

Project human resource management processes include human resource planning, acquiring the project team, developing the project team and managing the team. Processes are used multiple times, usually occurring at least once in a project or several times in different phases if the project is made up of many phases. In reality, processes intersect with each other and with other phases and are not as definite and concrete as illustrated here.Project human resource management planning may be required if more experienced members are added to the team. The project management team should also prepare for risk management and changes to project duration.

7. Project Communications Management: Project Communications ManagementProject Communications Management plays a key role in keeping all members of the project management team on the same page. Without communication among all team members and project stakeholders there can be a breakdown in processes which could have a negative impact on the final product.

The project manager must know the communication processes involved in effective project management. First of all there should be planning to determine what information needs to be communicated to all stakeholders in the project. Next, that information must be made readily available to the stakeholders and generated in a timely fashion. Performance must also be accounted for by reporting the project status, measuring progress and forecasting. Finally, communication with project stakeholders must be managed so that all requirements are met and issues are promptly resolved. Interactions and overlap among the communication processes are inevitable and expected throughout all phases of project management

Project Communications Management can be broken down into essential knowledge and skills as follows:- Managing a meeting by having an agenda as well as resolving conflict- Writing style to be used- Method of communication; written or oral, informal memo or formal report, face-to-face or email, all of

which are dependent on the situation at hand- Techniques for presentation including whether to use visual aids and effective use of body language- Possible barriers or feedback loops that influence communication

There are also several key components in project communication management which should be considered. Encoding or translation makes sure everyone understands what is said. The output of that encoding is the message which is conveyed through a medium. Interference with the message is called noise and finally, the message must be decoded to have meaning for all involved.

8. Project Risk Management: Project Risk Management is a branch of the discipline of project management that deals with identifying and mitigating risk on a project. The desired outcome of risk management is to increase the probability and maximize the result of positive events. There are six steps to the project risk management process, and these steps are repeated over the course of the entire project.Risk Management Planning-The process of analysis and decision making with regards to the best address, plan, and implement the risk management activities of a project.Risk Identification- Assessment of the risk susceptibilities of a project and conveying their traits.Qualitive Risk Analysis- The process by which risks on a given project are given ranking with regard to their potential occurrence and impact on a project.Quantitive Risk Analysis- The numerical assessment of the impact of overall risk on a project.Risk Response Planning-A phase of project management that concerns planning interventions to reduce the risk to a project when faced with an adverse event.Risk Monitoring and Control-The dynamic and ongoing process of project risk management that notes risk occurrence, assesses the effect of risk, noting new risks, intervention with risk response plans, and assessing their outcomes across the duration of a project.

Risk management may involves the interaction of team members from other work groups to evaluate individual work packages and implement measures to reduce risk to the deliverables as a whole.

Risk is any element of uncertainty that may have a positive or negative impact upon project management such as time to completion, amount of resources, or cost.

Q.3 State and describe process of estimating resource & duration for the activity. List the basic elements of a project plan. [10 Marks]Ans: Activity Resource Estimating Process: Activity resource estimating is a process in which the project team carefully compiles a thorough listing of the resources that will be needed in completing a project. There are six inputs that are to be used in the process of activity resource estimating. Those six inputs are the activity list, the activity attributes, the organizational process assets, the enterprise environmental factors, and project management plan, and the resource availability. There are a number of tools that can also be utilized in most effectively estimating the required activity resources. Those tools include expert judgment, a complete alternatives analysis, the use of published estimating data, project management software, and the use of bottom-up estimating. The resulting outputs from this process include activity resource requirements; activity attributes updates, requested changes, a resource breakdown structure, and the

development of a resource calendar. The successful utilization of activity resource estimates will help assure that enough resources are acquired without waste and excessive expenditure.

Activity Duration Estimating: Activity resource estimating is a process in which the project team carefully compiles a thorough listing of the resources that will be needed in completing a project. There are six inputs that are to be used in the process of activity resource estimating. Those six inputs are the activity list, the activity attributes, the organizational process assets, the enterprise environmental factors, and project management plan, and the resource availability. There are a number of tools that can also be utilized in most effectively estimating the required activity resources. Those tools include expert judgment, a complete alternatives analysis, the use of published estimating data, project management software, and the use of bottom-up estimating. The resulting outputs from this process include activity resource requirements; activity attributes updates, requested changes, a resource breakdown structure, and the development of a resource calendar. The successful utilization of activity resource estimates will help assure that enough resources are acquired without waste and excessive expenditure.

Q.4 Compare Critical Chain Project Approach & Critical Chain Approach. [10 Marks]Ans: Project schedule plan is the main plan included in any Project Management Plan. Project schedule is responsible for bringing project time, cost and quality under control. Project schedule links resources, tasks and time line together. Once a Project Manager has list of resources, work breakdown structure (WBS) and effort estimates, he is good to go for planning project schedule. Schedule network analysis helps Project Manager to prevent undesirable risks involved in the project. Critical Path Method (CPM) and Critical Chain Project Management (CCPM) are key elements of schedule network analysis. In the following sections we will explore these elements in details to understand their importance in keeping project on schedule to get increase in ROI.

Critical Path Method (CPM) / Critical Chain Approach: The Critical Path Method (CPM) is a schedule network analysis technique. CPM was developed by the DuPont Corporation in 1957.Critical path determines the shortest time to complete the project and it is the longest duration path through a network of tasks. Critical tasks (activities) are tasks (activities) on the critical path.To understand CPM further let's first understand nature of the task. According to PMBOK every scheduled task can be defined by the following four parameters.

• Early Start (ES): Earliest possible point in time on which a task can start.• Early Finish (EF): Earliest possible point in time on which a task can finish.• Late Start (ES): Latest possible point in time on which a task can start.• Late Finish (EF): Latest possible point in time on which a task can finish. Early Start and finish dates are calculated by means of Forward Pass and Late Start and Late Finish dates are

calculated by means of Backward Pass. Many Tasks have some amount of buffer added to them referred as Slack Time or Float. Float time is amount of

time a task can slip before it delays project schedule. There are two common types of floats.• Free Float: Amount of time a single task can be delayed without delaying the early start of any successor task.• Total Float: Amount of time a single task can be delayed without delaying project completion.

Mathematically Float is defined as: Float = LS - ES or LF - EF.Critical path has zero or negative Total Float. A project can have several critical paths.

CPM is helpful in: Project Planning and control. Time-cost trade-offs. Cost-benefit analysis. Contingency planning. Reducing risk.

Limitations of CPM: CPM assumes low uncertainty in schedule dates. Does not consider resource dependencies. Less efficient use of buffer time. Less focus on non critical tasks that can cause risk. Based on only deterministic task duration. Critical Path can change during execution.

To overcome above limitations Critical Chain Project Management (CCPM) plays important role.

Critical Chain Project Management (CCPM): According to PMBOK Critical chain method is a schedule network analysis technique that modifies the project schedule to account for limited resources. It mixes deterministic and probabilistic approaches to schedule network analysis. The critical chain concept was coined by Eliyahu Goldratt. Following few sections briefly describe the concepts Critical Chain depends on and are useful to understand the example that will follow shortly after that.CCPM takes advantage of the best practices of:

PMBOK: Planning and control processes. TOC (Theory of Constraints): Remove bottleneck to resolve constraints. Lean: Eliminate waste. Six Sigma: Reduce Variations.

CCPM helps to overcome following phenomenon. Parkinson’s Law: Work expands to fill the available time.

Student Syndrome: People start to work in full fledge only when deadline is near. Murphy's Law: What can go wrong will go wrong. Bad Multi Tasking: Bad multitasking can delay start of the successor tasks.

CCPM is based on: Resource constrained situations. Optimum use of Buffer (amount of time added to any task to prevent slippage of schedule)

- Project Buffers (PB): Amount of buffer time at the end of the project.- Feeding Buffers (FB): Amount of buffer time at the end of a sequence of tasks.- Resource Buffers (RB): It is an alert that is used to indicate that resource is needed to perform a task.

This alert can be set few days before a resource is actually needed.

Comparison of CPM and CCPM results:According to the results we found above, project duration by CPM traditional approach is 21 days and the project duration for the same amount of work by using CCPM is 16 Days.Using CCPM:

Project Duration can be reduced by 25-40%. Resources can be utilized effectively. Project is fully focused on both critical and non critical tasks

Q.5. A new railway project is launched in India. Give an example of each project Influencing factors acronym in PESTLE [10 Marks]Ans: PESTLE Analysis in Business Environment: In business PESTLE analysis role is very important. Originally designed as a business environmental scan, the PESTLE analysis is an analysis of the external macro environment in which a business operates. These are factors which are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning. PESTLE means:P- Political, E- Economical, S- Social, T- Technological, L- Legal, E-Environmental

The PESTLE subject should be a clear definition of the market being addressed that is as under:-1. A company looking at its market2. A product looking at its market3. A brand in relation to its market4. A local business unit or function in a business5. A strategic option, such as entering a new market 6. A potential acquisition7. A potential partnership8. An investment opportunity

Now we see in detail of PESTLE factors/Impact of a new Railway project being launched in India, i.e. opportunities in Rail Logistics Parks in India. It is the study of the Indian context with a focus on Vapi, Gujarat (PESTLE Analysis of Vapi MMLP).

Political Analysis: India has stepped up its plans in developing its infrastructure requirements and to promote its manufacturing and industrial sectors. The central government has launched ambitious plans to develop these requirements through public private partnerships. Considering the fact that the present government is the only other government to be re- elected after the government of Jawaharlal Nehru, we can assume that there will be stability in the policies brought forward by the present government. However, in a PPP, there is a level of control over the prices of services provided by the government. This might be problematic for a commercial developer in getting business to the park. For e.g. The Indian Railways which is under the administrative directive of the Ministry of Railways, heavily subsidise the passenger traffic on their services which they compensate by overpricing the freight traffic. The cost of transportation of steel (ton/km) is three times the one in China. As a result the movement of freight has increasingly shifted from rail to road. (Economic Intelligence Unit 2008). There is also the issue of high pricing of the toll on expressways and national highways for road freight traffic which has added to the costs and/or prevented many truck owners from using these roads for quicker deliveries. Moreover, changes in regulatory policies at JNPT can affect the margins of logistics operators. These policies and pricings can have significant impact on the development of the logistics park and affect growth in the long term.

Socio - Economic Analysis: The road freight industry is growing at 6-8% every year and is currently worth about INR 1.42 trillion. The country’s 4% of roadways carries 60% of the freight traffic. (Cushman & Wakefield 2008) This has not only increased the logistics costs, inefficiencies increase transport time, damage cargo and the increase the need to maintain large inventories. The impact to the Government is that there is an increase in the congestion on the roads which leads to more wear and tear and damaged roads resulting in high maintenance costs to the government. (Pankaj & Nimit n.d.) Manufacturers needing storage facilities and other services need to deal with separate agencies catering to these facilities. This has aided to the increase in the costs of logistics. Gujarat has an unemployment rate of 13% (Government of Gujarat 2008) and we know that the development of transport infrastructure is highly labour intensive and the project will help provide employment to people in and around Vapi. (CII, KPMG 2007) Manpower spends amount to 4% of sales against the industry average of 8 - 10%. India has a very large population of young workforce, but there is skills shortage especially in trucking and warehousing segment which can be addressed by involving multinational players in the market who will bring their skills and expertise into the Indian business. However, India’s labour regulations are complex and very restrictive which will hamper growth in the manufacturing sector on which the logistics parks are dependent. (Arvis et al. 2007) An MMLP can affect the livelihood of many depending on the trucking industry. However, this will take a

long time as organised logistics is forecasted at just 12% in the next 10 years. Skills development and training has to be imparted to these sections to reemploy them in other industry.

Technological Analysis: The Indian logistics sector lacks technological advancement that will hamper the provision of value added services to the customers. Integrated IT systems are necessary to link ports, the customs, and various parks to track shipments. Currently, only a few thousand vehicles out of a total of several millions have tracking system. Multinational logistics operators can bring their technological expertise into the market and will in turn benefit the local operators in optimising efficiency. In privatizing the operations of container traffic through rails, there might be problems faced by new entrants to secure the rolling stock and specialised storage containers e.g reefer containers because of limited manufacturing capacity and technical know-how. This will result in firms to import wagons at high cost. All these factors will increase the entry barriers for the private operators. (Pankaj & Nimit n.d.) Technology is constantly evolving and the sustainability of the social, economic and environmental factors is proportional to the technological advancement. Rail infrastructure is a long term investment, planned for a life of 30-40 years; therefore any changes in technology will be implemented only at a later stage. This might reduce the competitive advantage of rail freight. In a survey conducted among different companies operating in India, It was found that 63.04% of the respondents felt the most important value added service is access to information about their consignment movement.

Legal Analysis: All operators and commercial developers of a MMLP are bound by the Indian legal framework mainly by two laws. They are:1. Multimodal transportation of goods act: Multimodal transportation of goods in India is governed by an Act called the

Multimodal Transportation of, Goods Act; 1993. The Act primarily deals with the multimodal transportation of goods, from any place in India to a place outside India, on the basis of a multimodal transport contract and for matters connected therewith or incidental thereto. All parties carrying out business in multimodal transportation has to be registered under this act. The act deals with regulations regarding the registration of the service, responsibilities if the consignor/ consignee and the liabilities involved in the service.

2. Foreign Trade Act: Since multimodal logistic park operators have to handle goods exporting from and importing to India the operators are covered under “Foreign Trade (Development and Regulation) Act, 1992”. The act deals with, apart from other issues, the licensing requirements of the foreign trade, Power of Central Government to make Orders and Announce Export and Import Policy, Director General of foreign trade and his functions, issue of Importer-Exporter Code Number and Licence, power of the central government to Search, Seizure, Penalty and Confiscation of items traded/ premises of the trader etc. Though there is an exhaustive legal framework protecting the interests of the operators and the customers, the legal system is very slow and can be a barrier for an operator or developer in this field. In an interview, one of the trading directors of a large UK multinational revealed that the Indian judiciary, in his experience was a legal maze and it would be difficult to carry on with business as usual when the procedural framework makes it difficult for a project to kick start in the first instant.

Environmental Analysis: The Dedicated Freight corridor has an enhanced loading capacity in comparison to the existing facilities in the Indian railways. It has more width, height and an increased train length which will enable a load carrying capacity of 15,000 tons from the current capacity of 4000 tons. (Indian Railways 2007) In an interview, one of the senior executives of UK’s largest multi-modal logistics companies said that the market for CO2 reduction transportation is limited, especially in the recession where everyone is trying to reduce costs and are not willing to pay a premium for the service. However, he said that there is a market of retail giants like ASDA and TESCO who are interested in rail based logistics transport as it is more carbon friendly.

Conclusion: As the Indian markets are getting more competitive in the coming years, demand for multi-modal logistics services including value added services is huge. Policy changes like the abolishment of the CST and opening of free trade and warehousing zones are deciding factors for more companies to outsource their logistics services to third party contractors.

The traffic projection is for the Vapi project and does not reflect the overall demand of logistics parks in India. One the largest consumer for such service in the UK is the retail segment. Taking a cue from the UK market, we can assume that developing a logistics park in urban locations near to cities like Bangalore, Mumbai, and Chennai can capture greater traffic generated by both industrial as well as retail customers. To make this an even more attractive business proposition, value added services like ICT, software support, packaging, testing and quality control, postponement in manufacturing, etc can be provided in the logistics parks.

Limitations: Though the data for the traffic flows and demand have been taken in good faith, there are limitations to the figures and it is necessary to consider different factors influencing the data collection. The traffic forecast is calculated by taking into consideration the shift of traditional traffic flows (road transport) into rail. This can be achieved only when there is a cost advantage for the customer. The shift of traffic to the MMLP is dependent on the number of competitors in the area. The projections are forecast based on the assumption there will not be any other MMLP in this region. Though this might be a possibility in case of a rail based logistics park as the Indian Railways have a monopoly on the operation and development of this infrastructure, we have to take into consideration that other MMLP can be developed in the coming years depending on the demand. If a competitor can offer cost advantage with better service, this might directly affect the traffic flow to the Vapi MMLP.

Q.6. Describe the most important components of a project planning tool. [10 Marks]

Ans: One of the critical factors for project success is having a well-developed project plan. Here is a 10-step approach to creating the project plan, not only showing how it provides a roadmap for project managers to follow, but also exploring why it is the project manager's premier communications and control tool throughout the project.

Step 1: Explain the project plan to key stakeholders and discuss its key components. One of the most misunderstood terms in project management, the project plan is a set of living documents that can be expected to change over the life of the project. Like a roadmap, it provides the direction for the project. And like the traveller, the project manager needs to set the course for the project, which in project management terms means creating the project plan. Just as a driver may encounter road construction or new routes to the final destination, the project manager may need to correct the project course as well.

A common misconception is that the plan equates to the project timeline, which is only one of the many components of the plan. The project plan is the major work product from the entire planning process, so it contains all the planning documents for the project.

Typically many of the project's key stakeholders, that is those affected by both the project and the project's end result, do not fully understand the nature of the project plan. Since one of the most important and difficult aspects of project management is getting commitment and buying, the first step is to explain the planning process and the project plan to all key stakeholders. It is essential for them to understand the importance of this set of documents and to be familiar with its content, since they will be asked to review and approve the documents that pertain to them.Components of the Project Plan Include: Baselines. Baselines are sometimes called performance measures, because the performance of the entire project is measured against them. They are the project's three approved starting points and include the scope, schedule, and cost baselines. These provide the 'stakes in the ground.' That is, they are used to determine whether or not the project is on track, during the execution of the project.

Baseline management plans. These plans include documentation on how variances to the baselines will be handled throughout the project. Each project baseline will need to be reviewed and managed. A result of this process may include the need to do additional planning, with the possibility that the baseline(s) will change. Project management plans document what the project team will do when variances to the baselines occur, including what process will be followed, who will be notified, how the changes will be funded, etc.

Other work products from the planning process. These include a risk management plan, a quality plan, a procurement plan, a staffing plan, and a communications plan.Step 2: Define roles and responsibilities. Not all key stakeholders will review all documents, so it is necessary to determine who on the project needs to approve which parts of the plan. Some of the key players are:

Project sponsor, who owns and funds the entire project. Sponsors need to review and approve all aspects of the plan.

Designated business experts, who will define their requirements for the end product. They need to help develop the scope baseline and approve the documents relating to scope. They will be quite interested in the timeline as well.

Project manager, who creates, executes, and controls the project plan. Since project managers build the plan, they do not need to approve it.

Project team, who build the end product. The team needs to participate in the development of many aspects of the plan, such as identifying risks, quality, and design issues, but the team does not usually approve it.

End users, who use the end product. They too, need to participate in the development of the plan, and review the plan, but rarely do they actually need to sign off.

Others, such as auditors, quality and risk analysts, procurement specialists, and so on may also participate on the project. They may need to approve the parts that pertain to them, such as the Quality or Procurement plan.

Step 3: Hold a kickoff meeting. The kickoff meeting is an effective way to bring stakeholders together to discuss the project. It is an effective way to initiate the planning process. It can be used to start building trust among the team members and ensure that everyone's idea are taken into account. Kickoff meetings also demonstrate commitment from the sponsor for the project. Here are some of the topics that might be included in a kickoff meeting:

Business vision and strategy (from sponsor) Project vision (from sponsor) Roles and responsibilities Team building Team commitments How team makes decisions Ground rules How large the group should be and whether sub-groups are necessary

Step 4: Develop a Scope Statement. The Scope Statement is arguably the most important document in the project plan. It's the foundation for the rest of the project. It describes the project and is used to get common agreement among the stakeholders about the scope. The Scope Statement clearly describes what the outcome of the project will be. It is the basis for getting the buy-in and agreement from the sponsor and other stakeholders and decreases the chances of miscommunication. This document will most likely grow and change with the life of the project. The Scope Statement should include:

Business need and business problem Project objectives, stating what will occur within the project to solve the business problem

Benefits of completing the project, as well as the project justification Project scope, stated as which deliverables will be included and excluded from the project. Key milestones, the approach, and other components as dictated by the size and nature of the project.

It can be treated like a contract between the project manager and sponsor, one that can only be changed with sponsor approval.Step 5: Develop scope baseline. Once the deliverables are confirmed in the Scope Statement, they need to be developed into a work breakdown structure (WBS), which is a decomposition of all the deliverables in the project. This deliverable WBS forms the scope baseline and has these elements:

Identifies all the deliverables produced on the project, and therefore, identifies all the work to be done. Takes large deliverables and breaks them into a hierarchy of smaller deliverables. That is, each deliverable starts

at a high level and is broken into subsequently lower and lower levels of detail. The lowest level is called a "work package" and can be numbered to correspond to activities and tasks.

The WBS is often thought of as a task breakdown, but activities and tasks are a separate breakdown, identified in the next step.Step 6: Develop the schedule and cost baselines. Here are the steps involved in developing the schedule and cost baselines.

1. Identify activities and tasks needed to produce each of the work packages, creating a WBS of tasks. 2. Identify resources for each task, if known. 3. 3.Estimate how long it will take to complete each task. 4. Estimate cost of each task, using an average hourly rate for each resource. 5. Consider resource constraints, or how much time each resource can realistically devoted to this project. 6. Determine which tasks are dependent on other tasks, and develop critical path. 7. Develop schedule, which is a calendarization of all the tasks and estimates. It shows by chosen time period

(week, month, quarter, or year) which resource is doing which tasks, how much time they are expected to spend on each task, and when each task is scheduled to begin and end.

8. Develop the cost baseline, which is a time-phased budget, or cost by time period. This process is not a one-time effort. Throughout the project you will most likely be adding to repeating some or all of these steps.Step 7: Create baseline management plans. Once the scope, schedule, and cost baselines have been established, you can create the steps the team will take to manage variances to these plans. All these management plans usually include a review and approval process for modifying the baselines. Different approval levels are usually needed for different types of changes. In addition, not all new requests will result in changes to the scope, schedule, or budget, but a process is needed to study all new requests to determine their impact to the project.Step 8: Develop the staffing plan. The staffing plan is a chart that shows the time periods, usually month, quarter, year, that each resource will come onto and leave the project. It is similar to other project management charts, like a Gantt chart, but does not show tasks, estimates, begin and end dates, or the critical path. It shows only the time period and resource and the length of time that resource is expected to remain on the project.Step 9: Analyze project quality and risks.Project Quality: Project quality consists of ensuring that the end product not only meets the customer specifications, but is one that the sponsor and key business experts actually want to use. The emphasis on project quality is on preventing errors, rather than inspecting the product at the end of the project and then eliminating errors. Project quality also recognizes that quality is a management responsibility and needs to be performed throughout the project.

Creating the Quality Plan involves setting the standards, acceptance criteria, and metrics that will be used throughout the project. The plan, then, becomes the foundation for all the quality reviews and an inspection performed during the project, and is thus used throughout project execution.

Project Risks: A risk is an event that may or may not happen, but could have a significant effect on the outcome of a project, if it were to occur. For example, there may be a 50% chance of a significant change in sponsorship in the next few months. Analyzing risks includes making a determination of both the probability that a specific event may occur and if it does, assessing its impact. The quantification of both the probability and impact will lead to determining which are the highest risk that needs attention. Risk management includes not just assessing the risk, but developing risk management plans to understand and communicate how the team will respond to the high-risk events.Step 10: Communicate! One important aspect of the project plan is the Communications Plan. This document states such things as:

Who on the project wants which reports, how often, in what format, and using what media. How issues will be escalated and when. Where project information will be stored and who can access it.

For complex projects, a formal communications matrix is a tool that can help determine some of the above criteria. It helps document the project team's agreed-on method for communicating various aspects of the project, such as routine status, problem resolution, decisions, etc.

Once the project plan is complete, it is important not just to communicate the importance of the project plan to the sponsor, but also to communicate its contents once it's created. This communication should include such things as:

Review and approval of the project plan. Process for changing the contents of the plan. Next steps—executing and controlling the project plan and key stakeholder roles/responsibilities in the

upcoming phases.