MODULE 3

PROJECT PLANNING
Learning objectives
INTRODUCTION
PROJECT CHARTER
PROJECT SCOPE STATEMENT
SCOPE MANAGEMENT PLAN
WORK BREAKDOWN STRUCTURE
COST BREAKDOWN STRUCTURE
PRODUCT BREAKDOWN STRUCTURE
RESPONSIBILITY ASSIGNMENT MATRIX
PROJECT COMMUNICATION PLAN
PROJECT EVALUATION PLAN
INTRODUCTION

• Planning is the foundation of any project's success.

• The processes, roles, responsibilities, and tasks

associated with any project are identified through
project planning.
PROJECT CHARTER

• The project charter is a vital document formulated at the beginning of the project planning phase.

• It serves as a formal and concise record, confirming the project's existence and authorising project

managers to initiate project activities.

• Typically, the project charter is prepared subsequent to conducting a project feasibility study. The

charter is also commonly referred to as the project initiation document (PID).

PROJECT CHARTER

• Having a clear plan in place is essential before commencing a new project. The project charter serves
as a valuable starting point in this respect.

• It outlines the project's objectives, scope, and key stakeholders, providing the project team with a
roadmap.

• The project charter may include highlights from the project feasibility analysis.

• It may also summarise how the project's deliverables will fulfil the stakeholders' needs and identify the
project's resources and risk areas.
PROJECT CHARTER

Template of the Project Charter

1. Key Information
Project charter Project name

Prepared by Date Revision

Project Manager Project Sponsor

2. Feasibility/ Rationale behind selecting the project

Business Case [Summarise the business benefits/opportunity of the project]

Strategic Importance/ Financial [Summarise what strategic considerations and/ or financial appraisals were conducted
Appraisal before selecting the project]

3. Project Specification
3.1 Project Objectives

3.2 Project Scope

3.3 Project Stakeholders

3.4 Key Deliverables

3.5 Project Budget and Resources

PROJECT SCOPE STATEMENT

• A project's scope enables the project manager to establish its boundaries, objectives, and deliverables.

• By comprehensively understanding the project's scope, the project manager can ensure alignment with
the project goals.

• A project scope statement encompasses all key elements of the project's work.

• It serves as a tool for stakeholders to accurately measure project progress and determines the baseline
for project planning.

• It assists the project team in making project-related decisions.

PROJECT SCOPE STATEMENT
Project Scope Statement
1. Key Information
Template of the Project name

Prepared by Date Revision

Project scope statement Project Manager Project Sponsor

2. Feasibility/ Rationale behind selecting the project

Business Case [Summarise the business benefits/opportunity of the project]

Strategic Importance/ Financial [Summarise what strategic considerations and/ or financial appraisals were conducted before selecting the project]
Appraisal
3. Scope Description
In scope [List of activities/ functions that are within the scope of the project]

Out of scope [List of activities/ functions that are outside the scope of the project]

4. Project Description
4.1 Project Objectives

4.2 Project Outputs/ Outcomes and Deliverables

4.3 Project Requirements

4.4 Project Constraints

4.5 Project Milestones Target date

Project Start

Project Completion

4.6 Project Assumptions

4.7 Critical Success Factors

4.8 Cost Estimate/ Project Budget

5. Scope Statement Approval

Signed Date Approved Date
PROJECT SCOPE STATEMENT

Project objectives

When a company invests in a project, its anticipated benefits and targets are referred to as project
objectives. A well-written project objective should be SMART:
• Specific: The objectives should be clear on what must be achieved.

• Measurable: The objectives should be quantifiable and measurable after achieving the result.

• Achievable: The objectives should be accomplishable.

• Realistic: The objectives should be achievable with specific resources and within a duration.

• Time-bound: It should include information about when the objectives should be accomplished.
PROJECT SCOPE STATEMENT

Project outputs, outcomes and deliverables

• The project scope description outlines the project's outcomes, outputs, and deliverables.

• Project outcomes denote the changes or developments resulting from the project implementation.
Project outputs encompass products, services, activities, or attributes arising from the project
implementation.
For instance, an output of a vaccination campaign project could be the number of people
vaccinated, whereas the outcome could be a reduced prevalence of the targeted illness.

• Deliverables typically comprise the physical items that the project will provide, such as reports, plans,
tools, and products.
PROJECT SCOPE STATEMENT

Project requirements

• Project requirements encompass the features, functions, and tasks necessary for a project's success.

• These requirements outline the necessary conditions and functions required for the project's
completion.

• A project is considered complete only when all the project requirements have been met.
PROJECT SCOPE STATEMENT

Project constraints

• Project constraints refer to any restrictions that delineate a project's limitations in project management.

• These constraints must be defined at the project's outset and typically encompass resources, time,
budget, and equipment.

Project milestones

• Project milestones represent specific points of progress as the project progresses along the timeline.

• They signify the successful completion of major tasks and events within the project
PROJECT SCOPE STATEMENT

Project assumptions

• Project assumptions are elements assumed to be certain of the project's success.

• They are termed as such because it is anticipated they will persist for the project to progress
successfully.

• The project scope statement is prepared at the outset, and while some decisions may still be pending,
project assumptions expected to remain valid throughout the project are identified.
PROJECT SCOPE STATEMENT

Critical success factors

• Several key elements, often referred to as critical success factors, are necessary before a project can be
deemed successful.

• The success of a project depends upon critical success factors.

Cost estimate or project budget

• If relevant financial information is readily available, the project scope statement may also include a
summary of cost estimates or project budgets.
SCOPE MANAGEMENT PLAN

• A project's scope can make or break any project and can easily go off-track if not monitored.

• Project managers can define and map their projects using a scope management plan, ensuring
adherence to the planned scope.

• The scope management plan also aids in resource allocation, facilitating timely project completion
within budget and meeting stakeholder quality expectations.
SCOPE MANAGEMENT PLAN

• Projects rarely progress exactly as defined in the project plan.

• Project managers often need to adjust the schedule, budget, and quality specifications.

• The scope of any project may change over time.

 Changes can be brought by external factors beyond the project team's control.
 Internal factors may also contribute to changes in the project scope.
SCOPE MANAGEMENT PLAN

• Changes can sometimes be 'half-baked', potentially leading to extensive scope creep, which occurs
when changes to the project scope lack control procedures.

• Every change in project scope should undergo an approval procedure. Relevant stakeholders with
authority are required to approve any required changes. Otherwise, the project will experience scope
creep.

• Scope creep typically begins with minor changes or one project aspect. It may eventually involve more
changes to ongoing project requirements or increased activities.
SCOPE MANAGEMENT PLAN

• To prevent scope creep, managed and controlled change in the project is essential.

• This necessitates a change management plan, defining procedures for altering the project scope.

• An integral component of the change management plan is the introduction of a change log template.

• The change log template documents changes as they occur and tracks them throughout the project
lifecycle.
SCOPE MANAGEMENT PLAN

• Project managers can customise Change Log

and develop change log templates 1. Key Information
Project name
based on the project's nature and
Prepared by Date Revision
requirements. Project Manager Project Sponsor

2. Change details
Serial Description of Date Status Priority Expected Action Impact Escalation Date Issue
Change Identified Resolution Required Resolved

1 Sick team 7/02/2024 Open Critical One Month Contact HR Resources No [Ongoing
member for issue]
unable to replacement
work
2 Uncertainty in 8/02/2024 Closed High One Week Procure from Schedule Yes 10/02/2024
supply of raw alternative
materials supplier

…
…
WORK BREAKDOWN STRUCTURE

• The Work Breakdown Structure (WBS) is a framework that demonstrates the grouping of the total
project scope into project deliverables, sub-deliverables, and assessable work packages.

• The various levels of the WBS hierarchy.

WORK BREAKDOWN STRUCTURE

Example: House Refurbishment Project

Level 1
• Signifies the ultimate project
deliverable, which is the completed
house refurbishment
WORK BREAKDOWN STRUCTURE

Example: House Refurbishment Project

Level 2
• Outlines the primary requirements or
deliverables for the house
refurbishment.
• The house consists of a bedroom,
bathroom, kitchen, and lounge.
• The main deliverables encompass the
refurbishment of these project
elements.
WORK BREAKDOWN STRUCTURE

Example: House Refurbishment Project

Level 3
• Comprises the sub-deliverables, which
specify the tasks required for each
main deliverable.
• This involves breaking down each
deliverable into its component parts.
• For instance, refurbishing the
bathroom entails working on both
facilities and furnishing aspects.
WORK BREAKDOWN STRUCTURE

Example: House Refurbishment Project

Level 4
• The detailed work packages constitute the
final level, of each primary deliverable.
• At this level, all activities related to each sub-
deliverable are specified.
• For instance, to install bathroom facilities,
plumbing and electrical work must be
completed.
• Similarly, finishing the bathroom requires
addressing the floors and ceilings of each
bathroom.
WORK BREAKDOWN STRUCTURE

• Focusing on the quality and progress of all work packages of the WBS ensures the accomplishment of
sub-deliverables, as they comprise work packages.

• Achieving all sub-deliverables enables the production of all deliverables.

• Ultimately, completing all deliverables signifies the project's conclusion, as project outcomes
encompass all deliverables.
WORK BREAKDOWN STRUCTURE

Work packages

A project consists of a series of work packages grouped to form sub-deliverables, deliverables, and
objectives.

The work package becomes the fundamental unit for planning, scheduling, costing, and controlling the
project.

The project manager must ensure mechanisms are in place to review progress on work packages at
regular intervals.

Focus and control should commence at the work package level. If each work package is correctly
completed, the project will successfully conclude.
WORK BREAKDOWN STRUCTURE

Work packages

• Work packages are the point at which:

 the activities are defined,  cost estimates are made, and

 the schedule is formed,  resources are assigned.

• Work packages are individually planned and resourced.

• Typically, work packages are short-duration tasks for small projects lasting around 2–4 weeks. However,
on major projects, the duration of work packages could be longer.
WORK BREAKDOWN STRUCTURE

Work packages

• An important feature of a work package is that it represents a control point within the project.

• To ensure timely delivery within budget and technical specifications, each work package is allocated to
a dedicated work package manager (WPM).

• Depending on the nature and size of the project, a WPM may be responsible for one or several work
packages.
WORK BREAKDOWN STRUCTURE

Work packages

• Each work package will have its own scope, objectives, and deliverables, which the responsible WPM
will document in a work package statement.

• Finally, each work package must have associated cost and schedule.

• The work package manager is responsible for ensuring that a work package starts on time.

• Work packages should be monitored to ensure they are completed according to schedule, budget, and
quality.
COST BREAKDOWN STRUCTURE

• Cost breakdown structure (CBS) represents a hierarchical breakdown of the total project budget across
all deliverables, sub-deliverables, and work packages.

• While a work breakdown structure shows all the activities and tasks involved in the project, CBS
complements this information by detailing the costs incurred during the implementation of each task.

• The cost breakdown structure depends on a detailed and accurate WBS. The cost items and categories
determined in CBS are based on the tasks and activities identified in the WBS.
COST BREAKDOWN STRUCTURE

• Each line or row in a CBS represents a cost type. CBS breaks down cost data into different categories,
facilitating efficient cost management.

• It is an integral part of the project planning and implementation process, providing insight into project
expenditure.

• A solid cost breakdown structure can help control project costs and ensure they stay within budget.

• Creating a CBS begins with a detailed and accurate WBS, followed by assessing the labour, material,
and other costs involved in each step.
COST BREAKDOWN STRUCTURE

• A CBS initially operates at the task level, employing a bottom-up analysis approach. This approach is
more accurate than the top-down estimation approach.

• Costs are estimated using a process of 'roll-up', where the cost of each work package is accumulated
and rolled up to the ascending sub-deliverable at the next level. Each sub-deliverable is then rolled up
to the next level, providing an estimated budget for each main deliverable.

• Finally, the total cost of all main deliverables becomes the total cost of completing the project as a
whole.
COST BREAKDOWN STRUCTURE

Example of CBS
Project
$9,825

1.1 1.2 1.3

$5,500 $2,750 $1,575

CA 1.1.1 CA 1.1.2 CA 1.2.1 CA 1.2.2 CA 1.3.1 CA 1.3.2

$3,500 $2,000 $850 $1,900 $625 $950

CA [Link] CA [Link] CA [Link] CA [Link] CA [Link] CA [Link]

$1,000 $1,000 $700 $1,200 $300 $650
COST BREAKDOWN STRUCTURE

• The CBS provides granular information on the costs involved in each work package, beyond just the
total project cost.

• This offers insight into hidden costs that may not have been previously apparent.

• With this detailed information, the accuracy level of controlling project budgets can be increased.
COST BREAKDOWN STRUCTURE

• A project cost account is established for each work package within the CBS. Creating a project cost
account allows visibility into where project funds are allocated.

• It serves as a control point for monitoring and managing the cost performance of the work package.

• Data from the cost account helps identify work packages that have deviated from the budget.

• The project manager can investigate reasons for budget deviations based on this information.
PRODUCT BREAKDOWN STRUCTURE

• The product breakdown structure (PBS) is similar to the WBS but centres on the product rather than
project tasks.

• PBS simplifies complex projects by breaking them down into manageable components.

• Teams gain clear insight into a product, its components, and the requirements for each component.
PRODUCT BREAKDOWN STRUCTURE

• The PBS is a valuable tool delineating the physical components of a specific product or system.

• It breaks down the final product deliverable into components and sub-components.

• The creation process entails the project team breaking down the product into its constituent parts.

• PBS is hierarchical, starting with the final product at the peak and descending into sub-categorised
elements.
PRODUCT BREAKDOWN STRUCTURE

Example of PBS
RESPONSIBILITY ASSIGNMENT MATRIX

• Projects entail numerous activities, tasks, and responsibilities, which need effective control and
direction by the project manager.

• For the project to succeed, clear roles and responsibilities must be assigned to all team members, and
their tasks must be accurately defined.

• The responsibility assignment matrix (RAM) is a valuable tool in achieving this objective.
RESPONSIBILITY ASSIGNMENT MATRIX

• RAM is a chart that lists all activities from the work breakdown structure, assigning each task to a
specific team member.

• It provides the entire project team with an overview of the project, fostering a sense of involvement
and collaboration.

• Understanding the RAM enables team members to review workload distribution and comprehend
individual responsibilities within the project.
RESPONSIBILITY ASSIGNMENT MATRIX

• RAM and RACI are often used interchangeably in project management, though they have distinct
meanings.
 RAM delegates tasks to individual team members
 RACI defines roles as Responsible, Accountable, Consulted, or Informed

• RACI is a popular form of RAM where different individuals within the team are given at least one of the
RACI labels. RACI can be viewed as a subset of the broader RAM framework.
RESPONSIBILITY ASSIGNMENT MATRIX

• RACI matrix ensures the project team knows the exact roles of each member for completing tasks and
deliverables. The four roles are broken down as follows:

 Responsible (R): The person completing the task

 Accountable (A): The person coordinating the actions, making decisions, and delegating to those
responsible for the task
 Consulted (C): The person who will be communicated with regarding decisions and tasks
 Informed (I): The person who will be kept updated during the project implementation and
completion
RESPONSIBILITY ASSIGNMENT MATRIX

Responsibility Assignment Matrix

Template of the Project Details
Project name
Responsibility assignment Prepared by Date Revision

Project Manager Project Sponsor

matrix (RAM)
Resource Allocation
WBS Activity Title

Project HR Manager
Project Manager

WP Manager II
WP Manager I
Assistant PM
Task I A/R C C A I
Task II A C R I I
Task III A C R C I
Task IV A C C R I

Key
R Responsible
A Accountable
C Consulted
I Informed
PROJECT COMMUNICATION PLAN

• A project communication plan identifies how relevant information will be communicated to the right
stakeholders.

• It determines who will receive the communication, how they will receive it, when they will receive it,
and how frequently they should expect updates.

• The plan is crucial for keeping stakeholders and team members aligned.

• It establishes professional boundaries by specifying preferred communication methods for different

stakeholders, like email, text, or in-person meetings.
PROJECT COMMUNICATION PLAN

• The project communication plan entails identifying the information and communication needs of
project stakeholders.

• It outlines the procedure for disseminating project documents to stakeholders.

• The plan includes a mechanism for documenting that the necessary information has been effectively
communicated.
PROJECT COMMUNICATION PLAN

A typical template for a communication management plan should include the following:

 The stakeholder who will receive the information and his communication requirements
 Information to be communicated, including the content and level of detail required
 The method and format of sending the information (email, post, internal memorandum)
 The person responsible for communicating the information
 Frequency of communication
 Any action required with regard to a specific communication
PROJECT COMMUNICATION PLAN

Template of Project Communication Plan

Project Details
Project communication plan
Project name

Prepared by Date Revision

Project Manager Project Sponsor

Resource Allocation
Stakeholder & Detail of Format, method, Sender Frequency Action Required
Communication Communication etc.
Requirements
PROJECT COMMUNICATION PLAN

• Modern information technology enables project information management and communication

through the Internet using a cloud-based document management system.

• Benefits of employing information technology in a cloud-based system include:

 Accessibility: Stakeholders can upload and access information from any location.
 Communication tracking: Project managers can monitor communications and ensure relevant
stakeholders promptly receive pertinent project information.
 Automatic notification: The online system automatically updates all team members when new
documents are uploaded.
 Fast retrieval: The software search engine enables quick retrieval of documents and information.
PROJECT EVALUATION PLAN

• Project evaluation occurs continuously throughout the project lifecycle.

• Creating an evaluation plan at the project's outset is crucial.

• An evaluation plan outlines how the project's progress and outcomes will be assessed.

• It serves as the foundation for monitoring the project's advancement and evaluating its outcomes
upon completion.
PROJECT EVALUATION PLAN

Difference between process evaluation and effect evaluation.

• Process evaluation is done during the project’s implementation. It evaluates all project activities to
check whether they are performed according to the plan.

• Effect evaluation is usually done towards the end of the project. It aims to verify whether the project
objectives have been achieved.
PROJECT EVALUATION PLAN

• Process evaluation is done during the project’s implementation. It evaluates all project activities to
check whether they are performed according to the plan.

• Effect evaluation is usually done towards the end of the project. It aims to verify whether the project
objectives have been achieved.

• Specific evaluation questions are created by the project manager in the evaluation plan.
 For process evaluation, the questions should be linked to the planning, organisation and
implementation of the project activities.
 For effect evaluation, the questions should verify whether the project objectives have been
achieved.
PROJECT EVALUATION PLAN

• Evaluation indicators complement evaluation questions, quantifying them for measurement and
monitoring.

• They enable the assessment of project progress and the extent of objective attainment.

• Indicators measuring the progress of the project are called process indicators. They verify the
accuracy and timeliness of the steps taken for the project implementation.

• Indicators measuring the project outcomes are called effect indicators. They relate to the
achievement of the objectives.
PROJECT EVALUATION PLAN

Project Evaluation Plan

Template of
Project Details
Project evaluation plan Project name
Prepared by Date Revision
Project Manager Project Sponsor

Evaluation Plan
Serial What to measure When to How to measure (evaluation Who will measure Action points/ Notes
(Process indicators/ Effect measure questions, data collection
indicators) procedure, etc.)

…
 [Link]

End of Module 3
PROJECT PLANNING