PROJECT PLANNING

AND BUDGETING
PROJ6002

Module 1
Using Library & Academic Support
• Learning resources on Blackboard
• Academic support, Success Coach
• Use library e-books, journal articles, database
• [Link] 2

• Use Google scholar; NO Wikipedia

• Correct referencing – APA 7th Edition (check Academic Skills on Student Hub)
• In-text citations, Reference list – all require page number for each citation
• Each reference requires link in the Reference List (no doi number)
• SafeAssign < 20% overall, <10% Single source
• Studiosity
 Subject Description
• Relationships between operational factors and projects
• Scope, Time and Cost planning, developing an appropriate work
breakdown structure (WBS)
3
• Importance of managing project change, quality and risk
• Stakeholder communications in achieving successful project outcomes
• Practical exercises in developing project management skills
• Examine planning considerations associated with global projects
Recommended
Textbooks

4
Subject Structure
• Module 1: Project Scope Management Planning
• Module 2: Project Quality Management Planning
• Module 3: Project Resource Management Planning 5

• Module 4: Project Schedule Management Planning

• Module 5: Project Cost Management Planning
• Module 6: Global Challenges and the Human Perspective

Roughly two weeks per module

 Assessment Structure
Assessment Task Task Type Weighting Word Count Due

Discussion activity using the given case Initial discussion post – Week 3
Assignment 1 10% 750 words
study (Individual) Response post - Week 4

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Project Scope and Quality Management
Assignment 2 35% 2500 words Week 6
Plans (Group of 2 Students)

Project Schedule and Management memo

Assignment 3 15% 1000 words Week 9
(Individual)

Project Schedule and Cost Management

Assignment 4 40% 1500 words Week 11
Plans (Individual)

Detailed instructions in Assessment briefs

Presentation title goes here

Review

Basics of Project Management

The Triangle (Dilemma)

• Delivering a product quickly (time) & to a high

standard (quality), but then it will not be cheap (cost). 9

• Delivering a product quickly (time) and cheaply

(cost), but it will not be of high standard (quality).
• Delivering a product with high standard (quality) and
cheaply (cost), but it will take longer (time).
Triple Constraints
Three key components of project management
• Time: What are my start and completion dates?
• Cost: How much is the project going to cost? 10

• Scope: What makes up my entire project?

Triple Constraints
• The Triple Constraint is a balancing act
• You can constrain up to two dimensions (not all three)
• Three common cases 11

• Single constraint : One constraint is most important

• Double constraint: Prioritising one of the two constraints over the other
• The cop out: Putting the focus exactly in the middle
Iron Triangles
• Delivering a product quickly (time) and to a high
standard (quality), but then it will not be cheap
(cost) 12

• Delivering a product quickly (time), and cheaply

(cost), but it will not be of a high standard (quality)
• Delivering a product with high standard (quality)
and cheaply (cost), but it will take longer (time)
PMBOK
• Project Management Processes: “The project lifecycle is managed by
executing a series of project management activities known as Project
Management Processes” (PMBOK® Guide, Sixth Edition, p.22)
13
• Knowledge Areas (10): The ten Knowledge Areas are made up of a set of
processes, each with inputs, tools and techniques and outputs (PMBOK ® Guide
Sixth Edition)

• Performance Domains (8): “A group of related activities that are critical for the
effective delivery of project outcomes” (PMBOK® Guide Seventh Edition, p. xii)
• Project Management Process Groups (5): The 49 processes are grouped into
five categories
Project Management Processes
Project management processes are grouped into five
categories known as:
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• Initiating
• Planning
• Executing / Implementing
• Monitoring / Controlling
• Closing
PMBOK® Guide 6th Edition
Project Management Performance Domains
“Collectively the performance domains represent a project
management system of interactive, interrelated and
Team

interdependent management capabilities that work in unison to

Project Work Stakeholders

achieve desired project outcomes. 15

As the performance domains interact and react to each other,

change occurs. Performance
Life Cycle
Measure

Project teams continuously review, discuss, adapt and respond to

such changes with the whole system in mind – not just the specific
performance domain in which the change occurred.” (PMBOK® Guide, Delivery Planning

Seventh Edition, p. xii)

Navigating
between
Uncertainty and
ambiguity
Module 1.1

Business vs Project Planning

Planning Definitions
• Planning (Oxford, 2002) is a formulated and especially detailed method by which
a thing is to be done.
• CIOB (2011) defines planning as ‘the determination and communication of an
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intended course of action incorporating details methods showing time, place and
the resources required.
• According to PMBOK (PMI, 2013), the planning process group consists of those
processes performed to establish the total scope of the effort, define and refine
the objectives, and develop the course of action required to attain those
objectives. The Planning processes develop the project management plan and
the project documents that will be used to carry out the project.
Business vs Project Planning
• Vision, Mission, Corporate Strategies
• Market research & analysis
• Organisational structure 18

• Product & Service plan

• Marketing & Sales plan
• Financing & Financial plan
• HR & Communications plan
Project Planning
Why Plan?

Planning Process Group (PMI, 2021):

19
• Establish the scope of the project
• Refine the objectives
• Define the course of action required to attain the
objectives that the project was undertaken to
achieve.
Project Planning
What to plan?

• Definable products, services or documents 20

• Discrete components of the overall project outputs

• Specified products of the project
• Time, Quality and Cost
Deliverables!!!
• Resources, Risk and Changes …
 Poor
estimates

Don’t want those to happen! Reputational Time and

damage budget loss

Consequences of
21
Poor Planning
Difficult to
Poor scope
anticipate
control
risks

Lack of
business Poor quality
support
Decisions in Planning Process
• The overall strategy of how the work process is to be broken
down for control.
• How control is to be managed. 22

• How design/specifications will be undertaken and by whom.

• The methods to be used to deliver the project.
• The strategy for subcontracting and procurement.
Decisions in Planning Process
• The interfaces between the various participants.
• The zones of operation and their interface.
• Maximising efficiency of the project strategy with respect 23

to cost and time.

• The management of risk and opportunity.

Baldwin & Bordoli (2014, p. 9)

 Basic Project Planning Steps
 Set and prioritise goals  Create supporting plans
• Identify and meet with  Risk management plan
stakeholders  Stakeholder management plan
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• Create a set of  Communication management plan
measurable goals  Human recourse management plan
 Present the project plan to stakeholders
 Define deliverables
 Project scheduling and
budgeting
Project Management Plan
• Executive summary • Project schedule and
milestones
• Project scope definition
• Budget/cost estimates
• Feasibility assessment and 25
contingency plans • Risk Management
• Constraints • Change Management
• Human Resource • Communications
Requirements Management
• Material/equipment
requirements
PM Plan vs Project Documents

26
 Project Planning cont.
1. Scope and Work 2. Time Planning 3. Resource and
Planning and Scheduling Cost Planning

1.1 Specifying 1.2 Decomposing 2.1 Scheduling 2.2 Scheduling with 3.1 Resource 27
3.2 Cost planning
deliverables and organising work without uncertainty uncertainty allocation

4. Quality Planning 5. Risk Planning

4.1 Project quality 4.2 Project quality 5.1 Risk

5.2 Project risk 5.3 Project risk 5.4 Project risk
and performance and performance definitions and
identification analysis response planning
parameters management concepts
Planning Failure
Optimistic Planning
• Planning failure: the difference between what was
achievable and what was planned
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• Perceived failure: the difference between what was
planned and what was actually achieved
• Actual failure: the difference between what was
achievable and what was actually accomplished
Pessimistic Planning
Module 1.2

Project Scope Planning

30
Project Scope
• Scope is a statement that defines the boundaries of the project.
• What will be done
• What will not be done
• Also known as the Functional Specification

• Product scope : the features and functions that characterise a 31

product, service or result

• Project Scope : the work performed to deliver a product, service
or result with the specified features or functions

• Project scope management includes processes to ensure that

the project includes all of the work required, and only the work
required to complete the project successfully
Scope Management Processes
Plan scope
management

Collect
Control scope
requirements 32

Validate
Define scope
scope

Create WBS
Plan Scope Management
• Quality Management Plan
• Project Lifecycle Description
• Development approach

33

• Enterprise Environmental Factors

• Organisational Process Assets
Tools and Techniques
Expert Judgement
• Input received from knowledgeable and experienced parties

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Data analysis
• Alternative analysis – various ways of collexting requirements, elaborating the
scope, creating the product, validating the scopoe, controlling the scope

Meetings
• Attendees may include project manager, project sponsor, project team members,
stakeholders, persons with responsibility for scope management areas
 Define Scope
Tangible or Intangible Outside the agreed
results or outcomes project boundaries, Not in
that the project is to the scope. Could be
produce at the end or negotiable, depending on

1 throughout
3 constraints
5
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Scope Acceptance Constraints
Description Criteria Assumptions
2 4
A short descriptor to Essential Project limitations
explain what the Deliverables requirements, Exclusions (CTQ); and
project is about. including conditions, Project factors are
standards and believed to be true.
performance that
project deliverables
must satisfy
 Outputs
Scope Management Plan Requirements Management Plan
Component of the Project Management Plan – describes Component of the Project Management Plan – describes how

how the scope will be defined, developed, monitored, requirements will be collected and analysed, documents and

controlled and verified managed.

• Process for preparing a project scope statement • How requirements activities will be planned, tracked and 36
reported
• Process that enables the creation of the WBS from the
• Configuration management activities – change management,
detailed project scope statement
impact analysis, monitoring and controlling, reporting and
• Process that establishes how the scope baseline will
approval process
be approved and maintained
• Requirements prioritisation process
• Process that specifies how formal acceptance of the
• Metrics that will be used and the rationale for using them
complete project deliverables will be obtained
• Traceability structure that reflects the requirement attributes
captured on the traceability matrix
Scope Management Plan

37
Requirements Management Plan
Project Overview

Requirements gathering process

38

Roles and Responsibilities

Tools

Requirements traceability

Change Control
Collect Requirements
• Is the process of determining, documenting, and managing
stakeholder needs and requirements to meet project objectives.
• Provides basis of defining and managing project scope, including 39

product scope.
• Video: The Expert
[Link]
Collect Requirements
What to Collect?
From whom to Collect?
40
How to Collect?
41
 Stakeholder • Understand stakeholder communications requirement and
Engagement • Level of stakeholder engagement requirements in order to

Inputs Plan
• Assess and adapt to the level of stakeholder participation
in requirements activities

• Identified assumptions about the product, project,

Assumption log environment, stakeholders and other factors that can
influence requirements

Lessons Learned • Provide information on effective requirements collection

techniques, especially for projects using an iterative or 42
Register adaptive produce development methodology

• Identify stakeholders who can provide information on the

Stakeholder requirements,
Register • Captures requirements and expectations that stakeholders
have for the project

Business Case • Describes required, desire and optional criteria for

meeting the business needs
Outputs
Business Requirements

Stakeholder Requirements
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Solution Requirements

Transition and readiness Requirements

Project Requirements

Quality Requirements
Outputs : Traceability Matrix
Grid that links requirements to the deliverables that satisfy them

Helps ensure each requirement adds business value by linking it to the business
and project objectives 44

Provides a means to track requirements through the project lifecycle

Helps to ensure that approved requirements are delivered at the end of the
project

Provides a structure for managing changes to the product scope

Traceability Matrix

45
Define Scope

46
Scope Statement
• Description of the project scope, major deliverables, assumptions
and constraints
• Documents the entire scope 47

• Is considered one of the key documents of the projects –

• It provides a common understanding of the project scope among
project stakeholders
• Common inclusions : scope description, acceptance criteria,
deliverables, exclusions, constraints and assumptions.
Scope Creep
“Adding features and functionality (project scope) without
addressing the effects on time, costs, and resources, or without
customer approval” (PMI, 2017) 48

[Link]
Work Breakdown Structure (WBS)
“A deliverable-oriented hierarchical decomposition of the work to
be executed by the project team to accomplish the project
objectives and create the required deliverables. It organises and 49

defines the total scope of the project.” (PMI, 2017, p. 126)

 1.0 Project
 1.1 Deliverable
 1.1.1 Main task / Activity
 [Link] Sub task / Work Package
Work Breakdown Structure
Breaking down project deliverables and project work into smaller,
more manageable components.
50

Creating a WBS is like breaking down a meal into small bite-sized pieces – small
enough to swallow but not so tiny that we spend all day cutting it up.
WBS cont..
• Defines all the work of the project scope & clarify the project scope
(inclusions and exclusions)
• Reflects the project inputs 51

• Provides a baseline for project control

• Is a primary input to other project management processes and plans
• Is a means of communication with project stakeholders
• Scheduling and cost management cannot be accomplished until a work
breakdown structure is laid out.
WBS cont..
The following steps should be taken to develop a well-designed WBS:

52
1. Create a list of major activities or deliverables.
2. Arrange them in order.
3. Break down each of the major activities to several smaller tasks.
4. Continue the decomposition till you find the smallest level tasks can
be assigned to an individual.
Levels of WBS
• The number of levels depends on the size and complexity of the project, and the
level of detail required
• The first and top level is the project title
• Each level is a smaller piece of the level above 53
WBS Tools and Rules

 Expert judgement
 Analogous technique 54

 Lessons learned
 Brainstorming
 The 100% rule (roll up as full work load, nothing left)
 The 8/80 rule (8 < work package < 80 hours)
WBS Benefits
• Providing a framework for organising and managing the approved
project scope.
• Ensuring you have defined all the work that makes up the project. 55

• Facilitating communication and cooperation among team members.

• Providing a basis for estimating staff, cost, and time.
• Providing a framework for planning and controlling cost and
schedule.
 100% rules
• Top level is project totality
• Every level below adds to
100% to ensure that all
activities are included
• Check Level 2 (100%) =
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Level 1 (100%)
• Check Level 3 (100% ) =
Level 1 and 2 (100%)
• Ensures that all efforts are
captured where they belong
and nothing unrelated is
included in an element Adapted from:
[Link]
• [Link]
57
Learning Activities - WBS
Key Project Deliverables and Requirements
for a sample project of developing an
application to be used for PM study: 58

• Incorporate with Uni Library system

• Build in textbook, case study and quiz
• User friendly design
• Test prototype before go-live
• Compatible with iOS and Android
Learning Activities - WBS
What you need to do:

 Design at least 3 levels of breakdown; 59

 Address all deliverables

 Conduct further research for work-decomposition
 Free style to present
Next Module
Project Quality Management (Planning)

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