TM 665 Project Planning

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TM 665Project Planning Control Dr. Frank
Joseph Matejcik
8th Session 3/29/04 Chap. 5 Project Planning
Chap. 6 Conflict Negotiation

• South Dakota School of Mines Technology, Rapid
  City

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Agenda

• AssignmentQuestions on Advantix 22, 23, 24
  page 273, and Ringold's pages 273 274
• Revised Schedule About the test? Today, if you
  like, or as needed.
• M M (Chap. 5 Project Planning Chap. 6
  Conflict Negotiation)

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Tentative Schedule
Chapters Assigned Chapters 12-Jan 1 e-mail
22-Mar 4 Qs on page 226 contact, p24
questions 19-Jan Holiday 29-Mar 5,6(start)Qs
273-4 26-Jan 2 Problems 3-7 page 93 05-Apr 6, 7
02-Feb 8 problem 12, MS Project 12-Apr Holiday
09-Feb 9 problems 3, 5 19-Apr 11
16-Feb Holiday 26-Apr 12,13 23-Feb 10
problems 2, 8 3-May Final 01-Mar Test (snow
day) 08-Mar Break 15-Mar 3 Ohio hospital
IM Inc., page 164
Attendance Policy Help me work with you.
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Ch. 5 Project Planning

• Good Quote
• Plans are only good intentions unless they
  immediately degenerate into hard work
• Lame excuses for not planning
• Takes too much time
• Customers dont know what they want
• If we commit, we will be held accountable

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Ch. 5.0 Reasons for Project Planning

• Establish directions for project team
• Support objectives of parent organization
• Make allowance for risk
• Put controls on the planned work

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Ch. 5.0 Project Planning in Information Systems
View of several authors in the field of IS
Planning Process units breakdown
Popularized Name
4 to 6 or 7 phases
System Development Life Cycle (SDLC)
7 steps
(no name)
6 planning sequences
(no name)
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Ch. 5.0 Contents of Project Planning Chapter

• Initial project coordination
• Systems integration
• Sorting out the project
• Work breakdown structure (WBS) and
  linearresponsibility charts
• Interface coordination through integrationmanage
  ment

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Ch. 5.1 Init. Project Coordination
Senior Management Role

• Delineate the firms intent
• Outline scope of project
• Describe how projects results reinforce firms
  goals

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Ch. 5.1 The Project Launch Meeting
Project Launch MeetingVisible symbol of top
managements commitment to the project
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Ch. 5.1 Major Issues at Project Launch Meeting

• Existence of well defined set of project
  objectives
• Precise nature of scope statement
• Uniqueness of project

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Ch. 5.1 Detail / Length of Project Launch Meeting

• For routine projects
• Touch base, short meeting
• Unique projects
• Extensive discussion

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Ch. 5.1 Potential Traps for Project Launch
Meeting
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Ch. 5.1 Expected Outcome of Project Launch
Meeting

• Establish technical scope
• Participants accept performance responsibility
• Tentative overall schedules and budgets
• Creation of Risk Management Group

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Ch. 5.1 Major Risks Considered at Project
Planning Initiation

• Market reaction to new process / product
• Project being stopped due to patent awarded to a
  competing innovation

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Ch. 5.1 Risk Management Plan Includes

• Project technology
• Project schedule
• Project resource base
• Myriad of other risk factors
• Makeup of project risk management group

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Ch. 5.1 Composite Plan

• Combination of Risk Management Plan and Project
  Launch Meeting action items
• Approved by all participating functional groups
• Endorsed by PM and sent up the management ladder
  for approval

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Ch. 5.1 From Composite Plan to Project (Master)
Plan

• Modify composite plan with written change
  orders
• Approve updated plan with functional unit
  involved and senior management
• Iterate this process until no more changes are
  proposed
• Hold post planning review meeting

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Ch. 5.1 Carefully Determine Set of Deliverables!
Typical Scenario

• Marketing over promises deliverables
• Engineering may not be able to produce
  deliverable on time
• Marketing is unable to deliver on time

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Ch. 5.1 Marketings Objections to Early
Involvement of Engineering
Probably false
Probably true
Engineers are argumentative
Sales specialists know firms products and
services
Style
Cost of bringing engineers to a meeting drives up
sales cost
Sales specialists know about cost, designs and
lead times
Cost
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Ch. 5.1 Why Involve the Customer in Planning?

• Easier
• Faster
• Give customer a voice
• Cheaper (to do things right the first time)

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Ch. 5.1 Multifunctional Teams (Concurrent
Engineering)

• Used when a system must be installed in a larger,
  more complex system
• Integrates through cross functional groups

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Ch. 5.1 Project Plan Elements

• Overview
• Objectives
• General approach
• Contractual aspects
• Schedules
• Resources
• Personnel
• Evaluation methods
• Potential problems

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Ch. 5.1 Project Charter
Generated through negotiations involving the many
parties at interest in the project
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Ch. 5.1 Classic SDLC (Left) vs. Aaron et. al.
Model (Right)
Concept Evaluation
Feasibility
Requirement Identification
Analysis
Design
Design
Implementation
Build
Test
Closure
Integration
Validation
Customer Test Evaluation
Operations and Maintenance
Ongoing use
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Ch. 5.2 Three Main Objectives of Systems
Integration

• Performance
• Effectiveness
• Cost

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Ch. 5.3 Even Planning Process

• Make list of activities of similar importance in
  sequential order ? Level 1
• Break each level 1 process into sub processes as
  under a) ? Level 2
• Continue to higher process levels until no
  further breaking is possible

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Ch. 5.3Illustration to Even Planning Process
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Ch. 5.3 Form Useful for Even Planning Process
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Ch. 5.3 Tree Diagram Used in Hierarchical
Planning
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Ch. 5.3 Strategic Factors in Project Planning

• Project mission
• Top management support
• Projects action plan

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Ch. 5.4 Example of a Work Breakdown Structure
(WBS)
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Ch. 5.4 Steps in Designing a WBS

• List task breakdown in succeeding finer levels
• Construct a responsibility matrix
• Establish pricing control
• Schedule milestones
• Identify problems
• Generate Project Master Schedule

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Ch. 5.4 Linear Responsibility Chart
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Ch. 5.5 Planning and Design using
Multidisciplinary Teams

• Generate integrated base for project design
• Add software for conflict detection
• Add software to generate production plan
• Generate knowledge base

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Ch. 5.5 Ex. of Interface Map
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Ch. 5.5 Project Phases and Phase Gates in the
SDLC

• Feasibility
• Project Proposal
• System
• Requirement Specifications
• Design
• Design Specs
• Build
• Programmers and Users Manuals

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Ch. 5.5 Coordination Structure Model of Project
Management

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Summary Ch. 5

• The preliminary work plans are important because
  they serve as the basis for personnel selection,
  budgeting, scheduling and control
• Top management should be represented in the
  initial coordinating meeting where technical
  objectives are established, participant
  responsibility is accepted, and preliminary
  budgets and schedules are defined

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Summary Ch. 5

• Common elements of the project plan are the
  overview, statement of objectives, general
  approach, contractual requirements, schedules,
  budget, cost control procedures, evaluation
  procedures, and potential problems
• System integration concerns the smooth
  coordination of project systems in terms of
  cost, performance, and effectiveness

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Summary Ch. 5

• The work breakdown structure (WBS) relates the
  details of each subtask to its task and provides
  the final basis fir the project budget, schedule,
  personnel, and control
• When multifunctional teams are used to plan
  complex projects their work must be integrated
  and coordinated. Interface maps are a useful way
  of identifying the interdependencies that must
  be managed

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Ch. 6 Conflict and Negotiation
Most Conflicts Have Their Roots in
Uncertainty, and Negotiations Is a Way of
Managing the Resultant Risk
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Ch. 6.0 A Good Way to Understand Conflict

• Conflict is a process which begins when one party
  perceives that the other party has frustrated
  some concern of his/her

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Ch. 6.0 When Is a Conflict Resolved?
When the level of frustration has been lowered to
the point where no action against the other party
is being contemplated.
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Ch. 6.1 Two Definitions of Negotiation

• Negotiation is a process through which the
  parties seek an acceptable rate of exchange for
  items they own or control
• Negotiation is an endeavor that focuses on
  gaining the favor of people from whom we want
  things

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Ch. 6.1 Pareto-optimal Solution
A solution, such that no party can be made better
without making another party worse off by the
same amount or more (the antithesis of a win/win
situation)
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Ch. 6.2 Partnering
Partnering is a method of transforming
contractual relationships into a cohesive,
cooperative project team with a single set of
goals
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Ch. 6.2 Multi-step Process for Building
Partnered Projects

• Commitment
• Four part agreement
• Joint progress evaluation
• Problem resolution method
• Continuous improvement goals
• Joint review at project termination

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Ch. 6.2 Project Charter
Written agreement between PM, senior management
and functional managers, committing resources and
people to the project
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Ch. 6.2 A Charter Is a Signed Commitment To

• Meet design intent
• Complete contract without the need for
  litigation
• Finish the project on schedule
• Keep cost growth equal or below a predetermined
  amount

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Ch. 6.2 Scope Changes Are Caused By

• Technological uncertainty
• When the project team learns more about the
  nature of the deliverable
• A mandate

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Ch. 6.2 Conflicting Priorities

• High priority projects currently supported by
  senior management
• Lower priority projects should be done if time
  and resources permit
• Mandates must be done immediately

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Ch. 6.2 . And Then There Is This Pearl of Wisdom
This project is so important, we cannot let
things that are more important interfere with it